Media rules scrum brings out the fighting Irish in O’Reilly

O’Reilly, who already controls 26.4 per cent of the trans-Tasman newspaper, radio and outdoor advertising conglomerate through his Dublin-based Independent News and Media, has joined forces with private equity firms Providence Equity and The Carlyle Group to purchase the region’s third-largest media group. The group has lodged a proposal to acquire all of APN’s shares for $6.05 per share, an offer only three cents more than its failed bid in October last year.

APN is considering the proposal with its directors saying they must first assess the best interests of all shareholders. If the deal is accepted, it will be another episode in the continuing advance of private equity firms staking their claim in the Australian media industry. It will leave O’Reilly free to take advantage of the new media laws – whenever they are promulgated.

The bid to take control of APN faces a number of hurdles with independent shareholders holding out for a higher price. In light of the recent consolidation of media holdings, i.e. the Fairfax and Rural Press merger, APN remains the last major avenue for a would-be press baron to play with the big boys.

APN owns 23 daily newspapers and over 100 non-daily papers in Queensland, northern NSW and New Zealand, radio with Clear Channel Mix and is the largest outdoor advertising operators spanning street furniture, posters, transit and supersites.