Australian Community Media Seeks Deal with Southern Cross Media Group for Newspaper Titles Sale

Australian Community Media (ACM) is still pursuing a deal with Southern Cross Media Group (ASX: SXL) that could potentially see it offloading some of its major newspaper titles, following the rejection of a merger proposal late last year.

Southern Cross has revealed that ACM is now looking to sell a portfolio of 14 of its daily print and digital news publications, as well as select regional-metro titles and its agricultural division. This move comes after Southern Cross turned down ACM’s initial merger proposal, citing a lack of alignment with its strategic direction.

ACM, owned by media heavyweights Antony Catalano and Alex Waislitz, was once part of the Fairfax Media group before its merger with Nine Entertainment in 2019. The company currently owns 92 publications, including well-known titles such as The Canberra Times, Newcastle Herald, and The Land.

Southern Cross has stated that the current proposal from ACM is “materially different” from the previous merger offer, prompting the company to explore the potential benefits and synergies of a deal. However, there is no guarantee that a transaction will ultimately take place.

The potential deal with ACM comes after Southern Cross faced setbacks in its pursuit of a $250 million takeover deal with ARN Media Limited, the owner of KIIS FM. The deal, which was already complicated by various challenges, fell through when ARN’s joint-venture partner Anchorage Capital Partners withdrew from the agreement.

Despite these challenges, Southern Cross remains open to exploring opportunities for growth and expansion in the media industry. The outcome of discussions with ACM will be closely watched by industry observers as both companies navigate the rapidly evolving media landscape.