oOh!Media is edging nearer to offloading its youth publication Junkee Media, with a handful of potential consumers nonetheless within the working in a sale course of that’s anticipated to fall wanting preliminary expectations.ASX-listed billboard promoting firm oOh!Media introduced the sale of Junkee, which additionally runs publications Punkee and AWOL, in July, with plans to full a transaction earlier than the top of the yr. But it was initially unclear whether or not a deal would go forward after a number of consumers corresponding to Rollingstone writer Brag Media and The Latch writer Val Morgan withdrew.oOh!Media CEO Cathy O’Connor needs to discover a purchaser for Junkee by the top of 2021.Credit: Industry sources, who spoke on the situation of anonymity, stated a number of retailers, together with the UK-owned Guardian, stay in talks to purchase the corporate. Val Morgan and Brag Media have been additionally looking to buy the corporate and carried out due diligence, however have since walked. There was additionally hypothesis that Mamamia, the web site owned by Mia Freedom and her husband Jason Lavigne may additionally be within the combine. oOh!Media declined to remark.The sources recommend a transaction may very well be performed earlier than the top of the yr if oOh!Media and its advisor Jacanda Capital are keen to compromise on worth. oOh!Media wished the deal performed by October 29, however the course of has been delayed by negotiations over its worth. The Australian Financial Review stated final month oOh!Media was anticipating $20 million for the publication.Previous bidders imagine the enterprise is overpriced as a result of its most worthwhile half – the content material advertising and marketing studio – just isn’t included within the sale. There are additionally considerations a few fall in Junkee’s promoting income in a yr when different media firms outperformed expectations. Media firms together with Nine Entertainment Co (proprietor of this masthead) and Seven West Media have skilled a serious bounceback in promoting spend because the economic system recovers from COVID-19.LoadingThe different concern, in accordance to individuals acquainted with the matter, are strict clauses that would lie within the offers signed with Facebook and Google. Large media firms corresponding to Nine Entertainment Co (proprietor of this masthead) and News Corp Australia managed to take away restrictive termination clauses from their contracts, however smaller retailers didn’t. Junkee’s multi-year platform offers have been a key focus of its investor presentation.Bringing Junkee into the fingers of Guardian Australia may very well be a manner for it to develop youthful audiences. If Guardian Australia succeeds it might be the primary native transaction for the corporate, which is owned by Guardian Media Group (itself owned by a personal belief).oOh!Media purchased 85 per cent of the publication from its founders Neil Ackland and Tim Duggan in 2016 for $11.1 million, earlier than shopping for the remaining 15 per cent a number of years later. The acquisition was a part of a digital technique that aimed to hyperlink cell, social media and billboard promoting.Junkee was introduced for sale in July, a choice which oOh!Media CEO Cath O’Connor primarily based on a shift in technique to give attention to the corporate’s conventional belongings. Junkee expects to make $6.7 million in income in 2022. But due to sharp falls in promoting spend attributable to the COVID-19 pandemic, income for FY21 was simply $4.4 million, a lower on the earlier monetary yr.The Business Briefing publication delivers main tales, unique protection and professional opinion. Sign up to get it each weekday morning.
https://www.smh.com.au/enterprise/firms/junkee-sale-comes-down-to-final-weeks-20211203-p59ekd.html
