The owner of local mastheads like The Newcastle Herald and Maitland Mercury - Fairfax - has announced an astonishing merger with Nine Entertainment.
The two companies released details of the $4 billion move onto the Australian Stock Exchange this morning, with the aim of creating the biggest media corporation in the nation.
Under the new arrangement, shareholders of Nine will control 51.1% of the entity, with Fairfax shareholders owning the remaining 48.9%.
It's being touted by the companies as the best way to cut costs while retaining staff and boosting content in the wake of dwindling profits.
The merger has reportedly come as a surprise to Newcastle Herald staff, who are digesting the news just days after it was announced printing operations at Beresfield would shut down as part of a Sydney printing arrangement with rival, News Corp.
It also comes after the Nine Network announced it had sold off the NBN Television studios on Mosbri Crescent to Newcastle Developer Keith Stronach.
It's unknown whether there will be any changes to plans to build a seven-story apartment complex on the site.
Members of the Media, Entertainment and Arts Alliance are calling on the competition watchdog to block the takeover, and will reportedly hold talks with management in the meantime to gauge what it means for journalists.
The deal has been made possible by federal changes to media ownership laws, allowing one entity to control a greater portion of the media market than before.
The industry watchdog is yet to scrutinise contracts involved, but Communications Minister Mitch Fifield said there are no immediate issues with the deal.
"The ACMA has announced that they don't immediately see any impediments at first look," he said, "it looks to be in accord with media law."
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| Big Boss: Hugh Marks, of Nine Entertainment, will now control the new entity, 'Nine'. Image: Kate Geraghty. |
