Restructuring at Nine Signals Potential Sale of 2GB and 3AW
Nine Entertainment's strategic changes to its radio operations may indicate an impending divestiture of its talkback stations.
Nine Entertainment Co. has announced a significant restructuring of its radio division, further igniting speculation regarding the potential sale of its talkback stations, including 2GB and 3AW.
The media group plans to spin off its radio business's sales operations, moving sales teams from major cities including Sydney, Brisbane, Melbourne, and Perth, to operate independently.
This shift comes as Nine completes the sale of its digital real estate business, Domain.
Brian Gallagher has been appointed as the commercial director for audio, a role created specifically for him following his consultancy work with Nine.
Gallagher, a former executive at Southern Cross Austereo, previously advised ARN during its unsuccessful attempt to acquire that company last year.
His restructuring proposal aims to allow Nine Radio to function within a dedicated sales structure, while still being part of the broader streaming and broadcast division.
During a recent staff meeting, Nine CEO Matt Stanton stated that while there is no active sales process currently underway for the radio business, he remains open to future possibilities.
Insiders suggest that the new operational framework could streamline any prospective sale, presenting a more organized transaction to potential buyers.
2GB, based in Pyrmont, Sydney, and 3AW, which operates from Media House in Melbourne, are among the oldest talkback stations in Australia, having transitioned under Nine's ownership following its 2019 merger with Fairfax Media.
Interest in the radio business has been expressed from various entities, including the right-leaning news startup Australian Digital Holdings, although no formal offers have been submitted as of yet.
Nine recently appointed Amanda Laing, formerly of Foxtel, to oversee a new integrated division comprising radio, streaming services, and broadcast television.
This reorganization has altered reporting lines, with both television and radio heads now reporting to Laing instead of directly to the CEO.
Despite challenges posed by evolving listening trends, radio advertising revenue has remained relatively stable.
However, the audio division reports a declining share of Nine's overall profits, contributing merely 2% of the company's operating earnings in 2024. By contrast, television represented 42%, publishing accounted for 31%, streaming service Stan contributed 9%, and Nine's stake in Domain, currently being sold, made up 16%.
In fiscal 2024, the audio division's sales totalled $103 million, with earnings before interest, tax, depreciation, and amortization (EBITDA) reported at $8 million, nearly half of what it generated two years prior.
The first half of the 2025 fiscal year has seen a revenue increase, although several high-profile hosts including Ray Hadley, Neil Mitchell, and Alan Jones have exited the company in recent years after lengthy careers with Nine.
The media group plans to spin off its radio business's sales operations, moving sales teams from major cities including Sydney, Brisbane, Melbourne, and Perth, to operate independently.
This shift comes as Nine completes the sale of its digital real estate business, Domain.
Brian Gallagher has been appointed as the commercial director for audio, a role created specifically for him following his consultancy work with Nine.
Gallagher, a former executive at Southern Cross Austereo, previously advised ARN during its unsuccessful attempt to acquire that company last year.
His restructuring proposal aims to allow Nine Radio to function within a dedicated sales structure, while still being part of the broader streaming and broadcast division.
During a recent staff meeting, Nine CEO Matt Stanton stated that while there is no active sales process currently underway for the radio business, he remains open to future possibilities.
Insiders suggest that the new operational framework could streamline any prospective sale, presenting a more organized transaction to potential buyers.
2GB, based in Pyrmont, Sydney, and 3AW, which operates from Media House in Melbourne, are among the oldest talkback stations in Australia, having transitioned under Nine's ownership following its 2019 merger with Fairfax Media.
Interest in the radio business has been expressed from various entities, including the right-leaning news startup Australian Digital Holdings, although no formal offers have been submitted as of yet.
Nine recently appointed Amanda Laing, formerly of Foxtel, to oversee a new integrated division comprising radio, streaming services, and broadcast television.
This reorganization has altered reporting lines, with both television and radio heads now reporting to Laing instead of directly to the CEO.
Despite challenges posed by evolving listening trends, radio advertising revenue has remained relatively stable.
However, the audio division reports a declining share of Nine's overall profits, contributing merely 2% of the company's operating earnings in 2024. By contrast, television represented 42%, publishing accounted for 31%, streaming service Stan contributed 9%, and Nine's stake in Domain, currently being sold, made up 16%.
In fiscal 2024, the audio division's sales totalled $103 million, with earnings before interest, tax, depreciation, and amortization (EBITDA) reported at $8 million, nearly half of what it generated two years prior.
The first half of the 2025 fiscal year has seen a revenue increase, although several high-profile hosts including Ray Hadley, Neil Mitchell, and Alan Jones have exited the company in recent years after lengthy careers with Nine.
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