MediaWorks MediaWorks is investigating a potential merger with New Zealand's outdoor advertising business from QMS Media.
QMS said that it signed the main contracts for the proposed merger that is the subject of final binding terms and conditions.
An agreement would be created by a new entity that offers radio, television, digital and home advertising in New Zealand.
It is understood that the new entity will be 60% owned by MediaWork Oaktree hedge fund holders and 40% by QMS Australia.
QMS Media Chairman Wayne Stevenson said: "New Zealand is important for our business and we are excited about the potential to create a leading multimedia group that will transform the advertising business in New Zealand."
The Herald understands that MediaWorks staff was told to attend a meeting this morning before publication.
MediaWorks recently informed staff about continuous radio restructuring, including linking RadioLIVE with the existing Magic Network and re-branded as "Magic Talk". It is expected to be confirmed today.
The company's latest result showed a net loss of $ 5.7 million for the year to December to revenues of $ 300.2 million.
Oaktree wanted to reduce its exposure to MediaWorks. Last year, the US Hedge Fund was reportedly negotiating with South Cross Auster for the sale of radio frequencies of the company.
In 2015, Oaktree took full ownership of MediaWorks when it purchased the minority shareholdings of private capital companies TPG Capital and Bain Capital, after bankruptcy and debt restructuring.
MediaWorks president Jack Matthews said the proposed mergers represent a significant investment and commitment to New Zealand. He said that MediaWorks has made great strides over the past two years under the chief executive Michael Anderson.
Radio assets have long been the most appreciated aspect of the MediaWorks portfolio, and earlier speculation suggested that QMS could only be interested in the purchase of a company's share.
PR from MediaWorks today, however, is trumpeting a unique quad-play that would see four media channels that are being collected under one umbrella.
Although other traditional media channels are struggling to deal with a digital disorder, the industry has shifted shifts in the open air.
Outdoor Media Association of New Zealand (OMANZ) advertising data shows that money spent on outdoor advertising has gradually increased over the last six years.
Nielsen data show that the total amount spent on outdoor advertising has risen from $ 95 million in 2015 to $ 140 million in 2017.