Nine’s ‘neglected child’ Domain sale rumours

Speculation is mounting that Nine Entertainment may be about to put its floundering “neglected child” up for sale — but who would take it on?

Speculation is mounting that Nine Entertainment may be about to put its floundering property portal Domain up for sale — but who would take it on?

A business columnist at the Nine-owned Sydney Morning Herald, Elizabeth Knight, has raised the prospect of a possible sale in an opinion piece entitled: “Pregnant with possibilities: Why Nine is primed for change this year.”

The media company is undertaking a “strategic review” and, pointing out that “Nine’s share price is wallowing in a slump”; Knight writes that such a review “is usually code for asset sales”.

And she concludes that it’s Domain, which is separately listed and that Nine has a 60 per cent stake in, “would appear like the most obvious contender” to be sold off.

“Its share price has fallen more than 20 per cent over the past year in stark contrast to its major competitor, the Murdoch-controlled REA, whose share price has gained 36 per cent over the same period,” Knight writes.

Just why Domain has slumped while REA has roared is an interesting point.

Antony Catalano ... he’s planning a $55m mansion in Byron Bay. Picture: David Geraghty / The Australian

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One source previously high up in the old Fairfax suggested Domain was Channel Nine’s “neglected child”, not cross-promoted sufficiently in other parts of the business.

And, especially, that while most vendors in Sydney and Melbourne opted to market their properties on both portals, it was a different story in other capitals.

“REA had a broader remit, it’s much stronger than Domain in places like Adelaide, Brisbane and Perth,” the source pointed out.

In these tougher economic times, it makes sense that if sellers can get by promoting their property on one site rather than two, they’ll do it.

So who might be a contender to buy Domain? Some have suggested that the former Domain CEO, Antony Catalano, could be interested.

‘The Cat’ resigned suddenly as chief executive of Domain in 2018, just two months after the company was spun off from the then Fairfax Media and listed on the stock exchange as an independent entity.

Catalano set the Melbourne apartment record in 2019 with his purchase of the The Saint Moritz penthouse in St Kilda for $30m.

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In 2008, a decade before his quick exit from Domain, Catalano was made redundant by Fairfax.

He then proceeded to set up his own network of community newspapers that, according to The Australian, stripped $35m worth of real estate advertising from The Age.

Fairfax ended up paying more than $100m (in cash and shares) to buy his Metro Media group and within five years he was named the Domain CEO.

Could he now buy the company that had burnt him?

Catalano’s a rich man, but Domain is now valued at $2.2bn. He’s not flush as he once was, having set up his new media company, Australian Community Media, which has its own property portal. He also set a Melbourne apartment record with a $30m penthouse purchase in 2019, though he set a St Kilda record with the $16m sale of his mansion two years ago,

He’s now planning a $55m mega mansion in Byron Bay close by his exclusive guest house Raes on Wategos.

If he’s a few million short to buy Domain, he could call on other investors, of course.

Catalano owns the exclusive guesthouse Raes on Wategos at Byron Bay.

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“But why would he bother? He’d rather sit back and watch Domain wither and die,” said another insider, who worked with Catalano at Metro Media.

“And if Antony doesn’t buy it, who would? No-one!” the source opined.

Yet former Age editor in chief turned media commentator Andrew Holden thinks there’s still plenty of life left in Domain and while another media company or sales platform could be interested, Catalano is “the obvious candidate”.

“He knows the industry extremely well,” Holden says.

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“The thing about Antony is that he loves a deal and an opportunity to show he can take on an asset that isn’t performing well and do better with it, so if he feels there’s an opportunity for him, his track record suggests he’s likely to be gung-ho about it and take it on.

“He’s had a fascination with Fairfax/Channel Nine for many years and an element of him will want to show that he has that energy.

“I wouldn’t be surprised if he would be one of those to show some interest, but it will come down to the price.

“He’s already demonstrated that he can raise funds and bring in additional parties as he needs.”

Antony Catalano has been contacted for comment.

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Originally published as Nine’s ‘neglected child’ Domain sale rumours