The Australian Financial Review reports today that Nine Entertainment Co. has engaged Macquarie Group to explore the potential sale of ACP Magazines. The report goes on to note that senior executives from Seven West, owner of Pacific Magazines, have met with Macquarie for “preliminary” discussions. I’m sure newsagents will want to read the lengthy report in the AFR. Network Services magazine distribution business sits under the ACP structure as I understand it.
While I can see benefits for a merged entity, I expect that the ACCC would have some concerns about the move based on past decisions. That said, in any change there exists opportunities.
I have no doubt that 2012 will be a year of consolidation across a range of suppliers who trade with newsagents. We have seen one move already in the software space. I am sure there are be more changes on the way.
In yesterdays paper Kerri-anne gave nine a fair serve and for someone who has been at the place for decades, for her to say the banks are circling means nine needs to offload something soon to keep the show running. ACP might be it because there is no longer a Kerry Packer to push mags anymore.
We would read the report but for some reason our AFR went missing today!!!
it was on AFR some weeks ago
Would we really want to be at the mercy of one supplier that would own approx 75-80% of all the magazines in this country?
maybe its not such a bad thing.. one large major publisher more focus hopefully on the industry, increased marketing spend perhaps has they’ll need to make it work.
However one problem of this scenario is that it could mean only one distributor?
Pacific use Gotch and ACP owns Network.. so i ACP gets bought out what happens to Network.. that then becomes a bad thing.