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Fairfax, Nine announce plan to merge in $4b deal

SMH |  26 July 2018  |  News

Fairfax Media and Nine Entertainment have announced plans to merge by the end of 2018 in a deal they say will create Australia's largest integrated media player with a combined value of $4 billion.

The combined company, to be called Nine, will include Nine's free-to-air television network, Fairfax's mastheads including The Sydney Morning Herald and The Age, a suite of digital assets including property listings portal Domain, subscription video platform Stan and 9Now, and Fairfax's radio interests through Macquarie Media.

The companies said they expected the merger to deliver annualised cost savings of at least $50 million over the next two years.

Under the proposal, Fairfax shareholders will receive 0.3627 Nine shares and $0.025 cash for each Fairfax share, implying a 21 per cent premium to Fairfax's closing price on Wednesday. Once the deal is completed, Nine shareholders will hold 51.1 per cent of the combined company, with Fairfax shareholders owning the remaining 48.9 per cent.

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