Nine Entertainment appoints Stan boss Mike Sneesby as CEO

Nine’s move to appoint Stan boss Mike Sneesby as its new chief renews concerns about the relegation of its publishing arm.

Mike Sneesby has been CEO of streaming service Stan for seven years. Picture: Hollie Adams/The Australian

Nine Entertainment’s decision to appoint Stan boss Mike Sneesby as the company’s new chief executive has consolidated the media group’s focus on its broadcasting and streaming divisions and renewed concerns about the relegation of its publishing arm.

Mr Sneesby, who described his appointment as a “true honour”, will replace outgoing Nine boss Hugh Marks within weeks.

The company’s search for a new chief executive started in November, after Mr Marks disclosed he was in a relationship with former Nine executive Alexi Baker.

The selection process has deepened an existing board split with three directors linked to the former Fairfax Media entity keen on a candidate with ties to publishing business while the other three pushed for someone aligned to the company’s broadcasting division.

Nine merged with Fairfax Media in December 2018, with the chairman of the company which published the Sydney Morning Herald and The Age, Nick Falloon, becoming the amalgamated business’s deputy chair.

But Nine chairman Peter Costello, announcing Mr Sneesby’s appointment on Wednesday, said he was the “best qualified candidate” having run the company’s streaming business Stan for the past seven years. In that time it has grown in value to $1bn with 2.3 million subscribers.

Mr Sneesby would not be drawn on his immediate priorities as the company’s new chief executive but said: “We are a content organisation. And more of our revenues are coming through our digital subscription channels.”

Mr Costello denied reports that the Nine board had “fractured” over the appointment. “As far as I’m aware that’s not true,” he said.

“There is only one corporation — the Nine Entertainment corporation. The board is not fractured and the board is totally behind Mike Sneesby. This is a decision of the board and he will have every support of the board.”

The former federal treasurer said several senior executives from within Nine, as well as external candidates from around Australia and overseas, had been interviewed for the position. “A number of people from within our own company expressed an interest in this job, and would have been qualified for it,” he said.

“It was a very exhaustive process. In the end the board concluded that Mike was the best qualified candidate. Mike’s obvious strength has been the performance of Stan.”

While his appointment is undoubtedly a win for the company’s broadcasting arm, it has left some within the media group worried about the future of the print division, which also houses the Australian Financial Review and various online publications.

On Monday, ex-Fairfax board member Patrick Allaway resigned while another former Fairfax director, Mickie Rosen, was also said to be close to walking away, although Mr Costello denied this.

Meanwhile Mr Falloon is under investigation for misusing a corporate golf membership, and is understood to have a fraught relationship with Mr Costello.

On Wednesday, Mr Costello said Nine’s print division was still cherished, but he did not give an assurance that internal candidates who were overlooked — most notably chief publishing officer Chris Janz, who was a contender for the role — would stay with Nine.

“We value their contribution and we would like them all to be with us on this journey. That’s our view, and I hope it comes to pass.”

The Australian reported on Wednesday that Mr Marks had been absent from key investor presentations while Mr Costello and Mr Janz had largely handled negotiations with Google and Facebook over content payment.