“THE MERGED COMPANY WILL BE CALLED NINE”

It’s the end for Fairfax as the company merges with … er, is consumed by the Nine television network to form a $4.2 billion “unique, all-platform, media business that will reach more than half of Australia each day”.

It’s the end for Fairfax as the company merges with … er, is consumed by the Nine television network to form a $4.2 billion “unique, all-platform, media business that will reach more than half of Australia each day”.

We might be looking here at dinosaurs attempting to avoid extinction by cross-breeding. Robert Gottliebsen:

In theory the Nine Network takeover of Fairfax could work brilliantly but in practice, around the world, mergers between struggling companies rarely succeed. What happens is that the bean counters see all sorts of opportunities to slash costs and make the merger “work” in that way.

In the process revenue falls and even more costs cuts are required and what is left is a skeleton of a business that will be snapped up at a low price by a predator that can pick the bones.

As you’d expect, Fairfax staff are distraught:

Staff have taken to social media to express their concerns over the merger and what impact it will have on the publisher’s journalism.

Sydney Morning Herald journalist Kate McClymont was in disbelief, while fellow colleague Peter Hannam wrote that the news “hasn’t fully sunk in”.

Other Fairfax staff tweeted in agreement, distraught at the loss of the brand name and anxious about what’s to come, with one tweet suggesting “Fairfax Media will cease to exist under the merger”.

Well, Fairfax was always headed that way in one fashion or another.

UPDATE:

Brilliant, talented fairfax colleagues and friends trying to work out wtaf this means for them and their beloved masthead. pic.twitter.com/WCUJLjgIpN

— Miki Perkins (@perkinsmiki) July 26, 2018

To be fair, most of them spend every day trying to work out what anything means.

Nine's takeover of Fairfax isn't just a triumph for the Liberals, the history of media merger failures in Australia means the resulting slashing of jobs will go on for years https://t.co/GC8fRUk5EN

— Bernard Keane (@BernardKeane) July 26, 2018

The slashing will go on "for years"? Unlikely. There aren’t that many jobs.

UPDATE II. Wishful thinking from Fairfax’s Peter Hannam:

.@smh staff listening to Hugh Marx... the proposed CEO if Nine’s takeover of Fairfax. (Nine approached Ffx in early July, outgoing Ffx boss Greg Hywood just said.) pic.twitter.com/q3U42KhuQd

— Peter Hannam (@p_hannam) July 26, 2018

The man’s name is Hugh Marks.

UPDATE III. Terry McCrann:

In 2006, less than a year after his father Kerry died, James Packer sold the Nine Network to investors at a value of $5.5 billion.

The deal announced today values the combination of Nine and Fairfax at $4.2 billion. The two companies together are worth substantially less than Nine was on its own ten years ago — and no-one could seriously argue that putting them together is going to dramatically build value.

Yep. It’s a dinosaur dance.

UPDATE IV. Ex-Fairfaxer Ruby Hamad turns on her former comrades:

Would now be a good time to reveal that I was ‘blacklisted’ from Fairfax when I complained about being plagiarised by two of my own colleagues and quit my column in protest when management refused to take down the offending article? Oops. Looks like I just did. 🤷🏽‍♀️

— Ruby Hamad (@rubyhamad) July 26, 2018

UPDATE V. According to AAP, Paul Keating is worried about feline infiltration:

"Through various changes of ownership, no one has lanced the carbuncle at the centre of Nine's approach to news management.

"And, as sure as night follows day, that puss will inevitably leak into Fairfax."

Won't make much of a difference. Fairfax has long been a game of herding cats.