Nine Entertainment Co., Australia’s largest media conglomerate, has announced a significant shift in its business strategy by acquiring digital outdoor advertising leader QMS Media for A$850 million (approximately $598 million). This acquisition coincides with the company’s decision to divest its metropolitan radio assets and restructure its regional television operations, a move aimed at enhancing its digital revenue streams.
The deal, which was made public on October 6, 2023, involves the purchase of 100% of QMS Media from private equity firm Quadrant Private Equity on a cash- and debt-free basis. The acquisition is expected to be completed before June 30, 2026. QMS Media operates a national network of digital billboards and out-of-home advertising assets, prominently located in major cities and public transport hubs across Australia.
Matthew Stanton, Chief Executive of Nine Entertainment, described this acquisition as a “critical milestone” in the company’s transformation strategy, dubbed Nine2028. He stated that “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 emphasized that the transaction follows extensive due diligence and prior regulatory clearance, positioning Nine to capture a larger share of the shift toward digital advertising expenditure.
This strategic move supports Nine’s objective of increasing its digital businesses to comprise over 60% of group revenue by the end of fiscal 2027, a significant jump from around 45% in fiscal 2025. Analysts project that the combined portfolio will yield pro forma earnings before interest, tax, depreciation, and amortization of $113 million, thanks in part to anticipated cost synergies.
To finance the acquisition, Nine will utilize existing debt facilities and cash reserves, resulting in a net investment of approximately $601 million after accounting for other transactions. In conjunction with this acquisition, Nine is exiting the broadcast radio sector by selling its metropolitan radio stations, which include Sydney’s 2GB, Melbourne’s 3AW, Brisbane’s 4BC, and Perth’s 6PR, to the Laundy Family Office for A$56 million. The buyer is associated with prominent Sydney pub owner Arthur Laundy.
The decision to divest from radio comes amid declining traditional broadcast revenues and a notable shift in audience preferences towards digital platforms. Previous evaluations had placed a higher value on Nine’s radio assets, but current market conditions prompted the sale. Additionally, Nine is transitioning its regional television station NBN from a wholly owned operation to an affiliate model, shifting ownership and operations to partner Win Corporation.
These transactions represent a broader realignment for Nine as it responds to intensified competition from global digital giants and evolving consumer habits. Outdoor advertising, particularly in digital formats, has demonstrated resilience and growth potential as brands increasingly seek targeted, location-based outreach.
Following the announcement, shares in Nine Entertainment (ASX: NEC) surged, indicating investor confidence in the company’s digital-focused strategy. This acquisition also indirectly reintroduces Nine to the New Zealand market, as QMS owns MediaWorks, which operates outdoor advertising and commercial radio assets there. Nine previously owned Stuff Publishing in New Zealand but sold it in 2020.
Market observers note that these strategic moves underscore the challenges facing legacy media companies in Australia, where advertising dollars are continuing to migrate online. By shedding slower-growth assets such as radio and regional television while investing in scalable digital outdoor platforms, Nine aims to create a more future-proof portfolio. The transactions remain subject to customary closing conditions, but no significant regulatory hurdles are anticipated due to prior approvals.
