One of New Zealand’s largest media organizations is being sold for a single dollar to its chief executive, the owners announced yesterday.
The organization Stuff prints many of the nation’s daily newspapers and runs a popular news Web site of the same name. It employs about 900 staff, including 400 journalists.
Owned by Australia’s Nine Entertainment Co, Stuff faced financial challenges before the coronavirus pandemic struck and has since seen advertising revenues plunge.
Photo: AP / Stuff
In a statement to the Australian stock market, Nine Entertainment said Stuff would be sold to chief executive Sinead Boucher in a management buyout deal that would be completed by the end of the month.
“We have always said that we believe it is important for Stuff to have local ownership and it is our firm view that this is the best outcome for competition and consumers in New Zealand,” Nine Entertainment chief executive Hugh Marks said.
Boucher said she has been “blown away” by the positive feedback she has been receiving about the purchase.
“I feel really happy, relieved and proud. It’s been a really intense couple of weeks getting to the finish line,” she said.
Boucher, 49, began her career as a reporter for The Press newspaper in Christchurch and later helped lead some of the company’s digital innovations.
She said she has no immediate plans for any staff reductions or newspaper closures, but added the ownership change is not a silver bullet to cure the issues that Stuff and other media companies are facing.
Boucher said she would look to increase revenues from online readers.
Stuff last month set up an option for readers to donate money.
Boucher said she is purchasing Stuff through a limited liability company and is working through the details of a plan to transition the ownership by giving staff a direct stake as shareholders in the company.
The deal brings to an end the efforts of rival media company NZME to buy Stuff. Discussions between the two companies turned acrimonious and ended up in the hands of lawyers.
The New Zealand High Court last week declined an interim injunction sought by NZME that could have delayed the sale to Boucher.
Nine Entertainment said that it would retain ownership of a printing plant in Wellington and lease it back to Stuff. It would also get some of the profits from the recent sale of company offshoot Stuff Fibre, an Internet provider.
Most New Zealand media companies have been struggling since the pandemic struck. Stuff has temporarily cut employees’ pay, while NZME has announced plans to cut 200 jobs.
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