MediaWorks and QMS Media Limited have entered into a heads of agreement for a proposed merger of QMS Media’s New Zealand out-of-home, production and digital media business (QMS NZ) and MediaWorks' radio, TV and digital business.
The transaction is subject to agreeing final binding terms as well as several customary conditions and is expected to be completed in the second quarter of CY 2019.
The proposed merger would see QMS merge its local out-of-home, digital media and production businesses into MediaWorks. In return, QMS will receive a material but not controlling share of the company in the expanded MediaWorks business, with funds managed by Oaktree Capital Management, L.P retaining a majority.
The proposed merger of QMS NZ and MediaWorks would be a first in this market to combine out-of-home, radio, TV and digital as a destination for advertisers.
The announcement follows last weeks’ news that NZME and Go Media have entered into a sales partnership that will see the out-of-home company’s media solutions be included in the media company's multi-platform offering. NZME’s suite now includes radio, print, digital and Go Media’s portfolio.
About the proposed merger, Jack Matthews, MediaWorks chairman, says MediaWorks will be able to further enhance its ability to deliver local content and more effective advertising solutions to its customers.
“It will represent a significant investment in and commitment to New Zealand.”
Michael Anderson, who will remain CEO of MediaWorks, adds it “will present an outstanding opportunity to build its market presence with product and audience breadth in an environment where it’s able to grow and enable its continued investment in local content across television, radio and digital."
Wayne Stevenson, QMS chairman, is also excited by the proposal, saying New Zealand is important to its business and it is excited about the potential opportunity to create a multi-media group that will transform the New Zealand advertising industry.