More change at Nine as Domain boss steps down after six years

The chief executive of Nine’s digital real estate business Domain will step down after six years, sparking another succession hunt at the media company.

Jason Pellegrino is the latest high-profile departure in a turbulent year for Nine, which has included the exits of Nine chair Peter Costello and chief executive Mike Sneesby. Pellegrino will stay on while the company searches for a successor.

Domain chief Jason Pellegrino will depart the digital real estate business.Credit: Louise Kennerley

Domain, Nine’s most valuable asset, is down 10 per cent on the ASX across 2024, with its performance cast against News Corp-controlled REA Group, which is up 24 per cent across the same period.

Around 60 per cent of Nine’s market value is derived through its stake in Domain, according to the valuation of both companies as of Tuesday evening. Nine is increasingly eager to see its financial returns from Domain increase. Profits rose 26 per cent in Domain’s most recent full-year results.

While Pellegrino led Domain through the Nine and Fairfax merger, he also stabilised the company following the exit of its former chief executive Antony Catalano and questions over a broken culture, just two months after it went public in 2017.

Domain chair Nick Falloon said he was grateful for Pellegrino’s contribution to the business, worth $1.95 billion at close of business on Tuesday.

“He leaves Domain in a strong financial, operational and cultural position, underpinned by robust digital infrastructure that enables us to be highly competitive across the entire property ecosystem,” Falloon said.

He also paid tribute to Pellegrino for his leadership through disruptive periods, including the pandemic, and for overhauling the company’s organisational culture.

Nine has a 60 per cent shareholding in Domain. Nine also publishes The Age and The Sydney Morning Herald.

The two companies have signalled greater collaboration, with acting Nine chief Matt Stanton joining the Domain board full-time. Nine director Mickie Rosen was also added as a Domain director, replacing Sneesby. She attended her first board meeting this week.

Pellegrino will stay for an interim period of three to six months after the board approved his decision on Tuesday.

He said it is an appropriate time for change, with the company in a strong financial position and the property market in a robust state.

“In the meantime, I remain committed to the company and supporting my successor with a smooth transition,” he said.

Domain has faced mounting pressure over its performance compared to REA Group, which had its $12 billion takeover bid for British listings website Rightmove rejected last month. Nine reportedly gauged market interest in a private sale of Domain last year.

Nine is grappling with the fallout from the publication of an independent cultural review last week. Domain was not included in the review.

Stanton confirmed on Monday afternoon the company is investigating a number of complaints made against employees, with the help of multiple external firms.

Nine’s board recently engaged a recruitment firm to aid in its search of a permanent chief executive.

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