ARN acquisition of Southern Cross Austereo (pending approval)

[WATV]

What happens know!!!

[Brianc68]

@greenpea

Surely Nine would consider a bid for SCA now, although a Triple M/Hit/Nine Radio combination may be difficult.

Maybe a combined Nine and Nova bid? I’ve always thought Triple M and the Nine talk stations would make a good combo. Nova could pick up the Hit stations in Brisbane, Adelaide and Perth and flip them to Smooth. Spin off 2Day and Fox perhaps to ACE along with 4BH, 2UE and Magic. Although they’d have to divest 3MP or Magic in Melbourne. 5AA could go to Nine.

[FineTuned]

@tonks8526

@Ant5476

Will ARN have another crack at a later date?

Nope, I predict this will be the rise of SCA.

@lovemusic

Network 10 (metro) + Regional TV + Hit + Triple M + LiSTNR.

That would be more sustainable in the long term and would likely see them all remain on air.

This.

I’m predicting a fully Australian owned consortium will financially back SCA to merge with Network Ten. Paramount/CBS don’t want Ten anymore anyway. Arguably SCA don’t want to be in regional TV anymore but if they fully owned metro Ten they might be swayed to stay in the game.

The only hurdle will probably be antiquated reach laws that prohibit that transaction from potentially happening.

A Australian owned consortium? You mean something like ACP?

SCA have unfortunately seen their best days. Southern Cross killed the once great Austereo. Their programming is lacklustre and boring. At least if the ARN deal went through, it hopefully would’ve shaken things up a bit.

The NewSCA (as it was being called in the latest offer) probably would’ve been an even better fit with Ten. Trying to create synergies between a pop radio network (ie. Hit) and the Ten TV network, plus the regionals, likely would’ve been easier and more within scope.

[lovemusic]

@Moe

Nine buying the ACP side of that ARN deal would have been a pretty good fit. Nine’s talk network plus the Hit network in capital cities would give them a huge position in the market - and only would leave a handful of stations to sell on.

That wouldn’t work. Nine would end up with 4 stations in Syd and Melb so they’d have to sell Gold / WSFM and Magic / 2UE, as well as sell 4BH in Brisbane.

If ACE bought them, then ACE would have to sell 3MP.

[lovemusic]

The best bet for ARN to succeed in the alternative offer would be for Paramount or WIN or Nine and Seven buying either the whole or parts of SCA’s regional TV network.

Paramount previously made an offer to buy them but it was too low and it was rejected by SCA, if I’m not mistaken.

[FineTuned]

@lovemusic

Paramount previously made an offer to buy them but it was too low and it was rejected by SCA, if I’m not mistaken.

Ha! So SCA have essentially screwed themselves? They should’ve offloaded them while they had the opportunity.

[Radiohead]

Agree, no one else was ever going to buy them, and I think Paramount knew that with the offer they made.

[bacco007]

@FineTuned

Ha! So SCA have essentially screwed themselves? They should’ve offloaded them while they had the opportunity.

There have been several indicators that while SCA was open to a sale of the TV assets, they’ve rebuffed any offer with some kind of excuse.

It could be a situation where SCA’s inability to have divested from TV might be of their own making

[Willwalk]

@Ant5476

I agree I think SCA wants out of TV altogether, that is what seems to be causing most of their financial issues. I think they will be quite happy with just Hit / Triple M and LSTNR.

Very hard, easier said than done. What will happen to the SCA 10 stations, TDT, DDT and CDT? Although I concede that 7 has a better chance of buying Darwin, central and Tasmania. But there’s just one problem. What about the solus markets of broken hill and regional SA?

[Willwalk]

@FineTuned

Ha! So SCA have essentially screwed themselves? They should’ve offloaded them while they had the opportunity.

I think it might be too late now.

[Moe]

@lovemusic

That wouldn’t work. Nine would end up with 4 stations in Syd and Melb so they’d have to sell Gold / WSFM and Magic / 2UE, as well as sell 4BH in Brisbane.

You’d make all those moves - Fox + 3AW, 2Day + 2GB, 4BC + B105, SAFM + Cruise, 6PR + Mix - an amazing network of stations, plus being able to O&O their regional TV network for far cheaper than buying WIN’s stations would be - and SCA’s regional TV assets are already complementary owing to them selling NRN to WIN previously.

You could easily sell the rest, there will always be a buyer for capital city radio licenses, while Nine would be one of the very few buyers that might see value in SCA’s TV assets.

I suppose ARN’s issue would be working with Nine would create quite a strong competitor to them, unlike the fairly controllable potential of ACP.

[TVHead]

10 would probably still want them at a bargain basement price, and realistically SCA should agree just to be done with them.

[Willwalk]

@TVHead

10 would probably still want them at a bargain basement price, and realistically SCA should agree just to be done with them.

So if SCA wants to get out of TV, it will have no other choice but to accept a 10 network buyout of the SCA 10 stations, TDT, DDT and CDT, and sell Darwin, Tasmania and central to 7. Maybe 9 should buy imparja in NT / central. If that’s the case I really hope it works out well for SCA but I’m not holding my breath

[thesub1]

If ARN think Triple M can be financially beneficial for their network, then why the heck aren’t SCA smashing it in this area?

Or are they? Is Triple M what’s keeping SCA alive?

[bacco007]

@Moe

You’d make all those moves - Fox + 3AW, 2Day + 2GB, 4BC + B105, SAFM + Cruise, 6PR + Mix - an amazing network of stations, plus being able to O&O their regional TV network for far cheaper than buying WIN’s stations would be - and SCA’s regional TV assets are already complementary owing to them selling NRN to WIN previously.

Except that, while the Gordon Family are major shareholders (and control a board seat) in Nine, it’s not going to happen and this further underscores one of the major issues that SCA has with their TV assets - unless they’re sold to a “new” market entrant, they’re going to have to be split at some point which puts a number of them at risk.

Nine (or Ten) aren’t going to want to retain the markets and stations that they can’t integrate into their own network and I doubt they’d want to have to acquire them as a package deal to have to try and dispose of them.

[JohnsonTV]

I’d think Nine will be at least interested in buying Cruise and/or SAFM, to complete its five-city radio network, not to mention broadcast Olympic Games into Adelaide.

[utaussiefan]

They’d probably be best to buy FiveAA from Nova more than anything to complete the talk format.

[FineTuned]

@utaussiefan

They’d probably be best to buy FiveAA from Nova more than anything to complete the talk format.

Yes, this. Nova would be more likely to want SAFM to convert to Smooth, meaning they’d need to sell 5AA, which I’m sure Nine would gladly purchase.

[David]

Nova couldn’t just turn 5AA into Smooth without the hassle of having to sell and buy another station?

[Alwayslistening]

Your clear passion for SCA’s demise is concerning. The comments about all the offerings being terrible too is so ill informed. Plenty of winning, quality shows and talent across the network. This is the pettiness that needs to be removed from the discussion