Discovery paid $20m cash for TV3 and rest of MediaWorks' TV arm

Wednesday, 2 June 2021

The country’s large commercial television business fetched $20m in cash in its sale last year to Discovery.

United States entertainment giant Discovery paid $20 million in cash for TV3, Newshub and the rest of MediaWorks’ television business, accounts filed by MediaWorks with the Companies Office show.

The total proceeds from the sale totalled $23.5m once the TV businesses’ accounts receivable were included.

The sale price illustrates the low valuations now attached to mainstream media assets as a result of the shift of advertising revenues to the internet.

MediaWorks had previously announced a $4.8m loss for the year to the end of December.

**READ MORE:

* Newshub to close its Dunedin newsroom

* Discovery restructures operations as it beds down purchase of TV3

* MediaWorks weighing up acquisitions despite posting $4.8m loss

The revenues from its continuing operations not bought by Discovery, which are its radio and outdoor advertising business, fell by $2m to $184m, its full accounts show.

Chief executive Cam Wallace said on Monday that MediaWorks’ radio advertising revenues had remained robust during the pandemic and were improving this year, providing the company with a “clear road to profitability”.

MediaWorks was assessing some potential acquisitions that could give its core business “more scale” and that could add to its portfolio, he said.

Discovery announced a restructure of its operations in New Zealand and Australia in April, that is believed to be impacting dozens of staff, following its acquisition of TV3 and its Newshub journalism arm.

Confirmed changes include the closure of Newshub’s Dunedin newsroom.