Ann: NZM: Fairfax NZ merger process and NZME results date, page-13

I also tend to agree. FXJ's business has several different strands to it, one of which is Domain. Others include the metro mastheads /flagship properties, the suburban /regional titles, both daily and weekly (60+), as well as its majority share of the Macquarie Radio Network and various digital assets. There is of course also the NZ foray.

Whilst Domain is arguably the jewel in the crown of all these (especially now with The Age, SMH and AFR all in a holding transition pending increasing digitalisation going forward), one should not ignore completely the suburban, regional and rural titles which themselves reflect reasonable value.

That said, FXJ does indeed have some platforms that, with the right PEQ mix could well end up being a consolidator further down the track. Indeed, if the Domain spin-off were to occur, this could equally unlock funds for further extended investment in FXJ's own digital transformation. If so, it would not then surprise if sometime further down the track, the distinctions between news, publisher and ADV (added value) content provider blurred with FXJ becoming more of a digital transformation player (ie: akin to having its own suite of channels, original content, etc).

So, the spin-off /sale of Domain could well either free up capital for re-investment by FXJ elsewhere (maybe also an enhanced return to shareholders, but less likely) whilst also making FXJ overall a purer platform over which to propel itself forward in the future.



SEVEN is already doing this through its linkup with The West Australian, as well as with its increasing content (original and sourced) on FTV as well as in PayTV (share of Sky Channel and World Movies, for instance).

TEN is also arguably going down a similar road through its Foxtel connections (content, sourcing, original programming, etc) including FXT's shareholding in TEN.

It is also worth noting that here in Melbourne, where 3AW is operated, next week, its sister station of MAGIC1278 will transform itself as a new lifestyle talback station, to be known as Talking Lifestyle, which will be networked from Sydney.