Fairfax print threatened by TPG offer

Fairfax print would come under close scrutiny if the $2.2bn buy offer from US hedge fund TPG gets over the line.

The offer would see Fairfax split  in two, with the Domain real estate business, and major mastheads SMH, The Age and the AFR going to TPG, leaving the community and regional papers and other assets in limbo.

The already under pressure weekday print editions of the two big metro papers would likely move to digital only, as advertising continues to fall way. CEO Greg Hywood has signalled that is their future, he is just not sure of the timing.

However sources close to Fairfax say the offer by TPG is likely to be rejected. Fairfax is currently going through tumultuous times with 500 journalists on a week-long strike protesting about 125 imminent job cuts. It is also likely to be in merger talks with Channels 9 and 10 as the government signals it is going to repeal the two out of three rule for capital city media organisaiotns.

Fairfax is under the pump with its legacy print business suffering ongoing financial struggles. It has just been revealed that Facebook and Google are now sucking up 40 per cent of the entire Australian advertising spend, a fair bit of that would have come to Fairfax in the past.

 

 

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