Nine Entertainment Accelerates Digital Push With $850m Qms Media Acquisition, Exits Radio

Sydney, Australia — Nine Entertainment Co., Australia’s Largest Media Conglomerate, Has Agreed To Acquire Digital Outdoor Advertising Leader Qms Media For A$850 Million ($598 Million) While Divesting Its Metropolitan Radio Assets And Restructuring Its Regional Television Operations, In A Bold Strategic Overhaul Aimed At Bolstering Its Digital Revenue Streams.

The Deal, Announced Friday, Marks A Significant Pivot For The Company, Which Owns The Nine Network Television Broadcaster, Major Newspapers Including The Sydney Morning Herald, The Age And The Australian Financial Review, And Digital Platforms. Nine Will Purchase 100% Of Qms Media From Private Equity Firm Quadrant Private Equity On A Cash- And Debt-Free Basis, With Completion Expected Before June 30, 2026.

Qms Media Operates A National Network Of Digital Billboards And Out-Of-Home Advertising Assets, Including Prominent Locations In Major Cities And Public Transport Hubs. The Acquisition Expands Nine’s Footprint Into High-Growth Digital Advertising, Complementing Its Existing Online And Streaming Offerings.

Nine Chief Executive Matthew Stanton Described The Move As A “Critical Milestone” In The Company’s Nine2028 Transformation Strategy.

“The Acquisition Of This High-Growth Digital Outdoor Media Company, Qms, Further Diversifies Nine’s Revenue Streams And Adds Scale To Our Advertiser And Agency Relationships,” Stanton Said In A Statement. He Emphasized That The Transaction, Which Followed A Year Of Due Diligence And Prior Regulatory Clearance, Positions Nine To Capture More Of The Shift Toward Digital Ad Spending.

The Deal Advances Nine’s Goal Of Lifting Its Digital Businesses To More Than 60% Of Group Revenue By Fiscal 2027, Up From Around 45% In Fiscal 2025. Analysts Project The Combined Portfolio Will Deliver Pro Forma Earnings Before Interest, Tax, Depreciation And Amortisation Of $113 Million, Including Expected Cost Synergies.

To Fund The Acquisition, Nine Is Drawing On Existing Debt Facilities And Cash Reserves. The Net Investment, After Accounting For Other Transactions, Is Approximately $601 Million.

Simultaneously, Nine Is Exiting Broadcast Radio By Selling Its Metropolitan Stations—Including Sydney’s 2gb, Melbourne’s 3aw, Brisbane’s 4bc, Perth’s 6pr, And Others Such As 2ue, Magic1278 And 4bh—To The Laundy Family Office For A$56 Million. The Buyer Is Linked To Prominent Sydney Pub Baron Arthur Laundy.

The Radio Divestment Comes Amid Declining Traditional Broadcast Revenues And Audience Shifts To Digital Platforms. Nine Had Previously Valued Its Radio Arm Higher, But Market Conditions Prompted The Sale.

Nine Is Also Converting Its Regional Television Station Nbn From A Wholly Owned Operation To An Affiliate Model, With Ownership And Operations Shifting To Partner Win Corporation.

The Transactions Represent A Broader Realignment For Nine Amid Intense Competition From Global Digital Giants And Changing Consumer Habits. Outdoor Advertising, Particularly Digital Formats, Has Shown Resilience And Growth Potential As Brands Seek Targeted, Location-Based Reach.

Shares In Nine Entertainment (Asx: Nec) Rose Sharply On The Announcement, Reflecting Investor Approval Of The Digital-Focused Strategy.

The Acquisition Also Reintroduces Nine To The New Zealand Market Indirectly, As Qms Owns Mediaworks, Which Operates Outdoor Advertising And Commercial Radio Assets There. Nine Previously Owned Stuff Publishing In New Zealand Before Selling It In 2020.

Industry Observers Say The Moves Underscore The Challenges Facing Legacy Media Companies In Australia, Where Advertising Dollars Continue Migrating Online. By Shedding Slower-Growth Assets Like Radio And Regional Tv While Investing In Scalable Digital Outdoor Platforms, Nine Aims To Build A More Future-Proof Portfolio.

The Deals Remain Subject To Customary Closing Conditions, But No Major Regulatory Hurdles Are Anticipated Given Prior Approvals.