A planned merger that would bring together NZME and Stuff Limited has been called off but is likely to be renegotiated.
Stuff Limited is the new name for Fairfax Media’s New Zealand operations, and the rebranding was part of a significant shakeup of their business strategy.
The initial merger was going to give NZME the entirety of Fairfax’s New Zealand assets for $55 million and giving Fairfax 41% of shares in NZME.
The deal was agreed in September 2016 but due to market changes that have taken place since, it will now be renegotiated, pending a High Court appeal expected in June.
The High Court appeal comes after the the Commerce Commision rejected the merger in May 2017, saying that the deal would be bad for media diversity.
Stuff Limited released a statement saying, “If the appeal is successful, the parties intend to negotiate a new agreement to realise the significant benefits of the merging of operations of Stuff Limited and NZME.”