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The ailing New Zealand media market witnessed giant Stuff Limited was sold in a management buy-out deal for the symbolic fee of NZ$1.00 (US$0.61), according to an announcement made by the group's Australian owners Nine Entertainment on May 25.
Stuff Limited, operating New Zealand's most popular news website, stuff.co.nz, besides popular entities like Wellington's Dominion Post and the Christchurch Press, will be taken over by none other than its own chief executive, Sinead Boucher.
"The sale of Stuff is expected to (be) complete by May 31," Nine communicated in its statement to the Australian stock exchange. Boucher, who had joined the company as a reporter in 1993 and spent most of her career at same organization, described the event as a new era for Stuff.
"It is great to take control of our own future with the move to local ownership and the opportunity to build further on the trust of New Zealanders, who turn to us for local and national news and entertainment every day," she told stuff.co.nz.
New Zealand’s media market has been struggling of late due to COVID-19's impact and by the inroads being made by the global internet giants like Facebook and Google.
The one-dollar price of Stuff Limited brought to light the growing difficulties in New Zealand's media sector where its main domestic rival, NZME, had its own one-dollar bid for the company rejected earlier this month.
Stuff and NZME had both asked staff to take pay cuts due to the virus-induced downturn, with NZME cutting 200 jobs. German magazine giant Bauer Media Group had also closed down its New Zealand titles with the loss of 237 jobs last month, citing the severe economic impact of the pandemic.
Nine Entertainment, it may be recalled, had obtained Stuff when it acquired the company's Australian owner, newspaper group Fairfax Media in late 2018.
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