Rural Press lies in wait as media jungle comes alive with rumour

Speculation is building on the future direction of Rural Press, with the possibility of changes in 2005 to Australia's strict media ownership laws. The laws currently prevent businesses from owning more than one newspaper, radio or TV station in a single city, yet the Federal Government's proposed changes would clear the way for Rural Press to implement a number of buyouts.

The latest financial results for Rural Press reveal a lift in profits by 39 per cent to a record $58.4 million. Investment bank Goldman Sachs JBWere expects Rural Press to lead a big industry realignment if the Howard government succeeds in softening the restrictions after July> According to a report in the Sydney Morning Herald some of the names dropped as potential acquisitions include West Australian Newspapers, Southern Cross Broadcasting, Austereo Group and a number of other regional and rural publications.

Managing director Brian McCarthy declined to confirm any of this speculation, yet also did not rule any of it out. He insisted that the company was not about to leap into any inappropriate deals, yet emphasised that the company is still looking out for acquisitions that will work for shareholders.

McCarthy has gone on record as claiming that metropolitan newspapers would be a likely target for Rural Press, confirming that metropolitan television is not one of the company's key strengths. Rural Press owns more than 200 newspapers and magazines across three countries, and purchased five local newspapers in the second half of last year as part of an acquisition strategy that McCarthy says will continue.