QMS has acquired the remaining 45.13% of MediaWorks from Oaktree Capital, completing its ownership of the New Zealand media business and drawing industry focus on what comes next.
For the company’s CEO John O’Neill, this acquisition is more than just a consolidation of assets. It represents a new phase of strategic growth aimed at streamlining media offerings across both countries.
But the deal’s announcement has sparked fresh industry speculation around the next step for QMS and its owners, Quadrant.
Could this be the start of a broader consolidation strategy, or is it setting the stage for a future sale? Does the move signal larger ambitions in an increasingly convergent media landscape?
O’Neill, spoke to Mediaweek about the acquisition he sees as both a milestone and a launchpad.
“This is something we were hoping was going to happen for a long time,” he says noting QMS bought a 54.41 per cent stake in MediaWorks in 2019.
“There’s a lot of expertise in both businesses, we’ve learned so much over the last four years with the City of Sydney network. We’ve learned to build quality assets, to build great data sets around those assets and to really appreciate important environments.”
City of Sydney, Pitt St, Range Rover.
In fact, QMS’s expanded DOOH network in Sydney now has the opportunity to reach over 92% of the city’s population each week, according to MOVE 1.5 data from May 2024, and with the NZ$350 million Auckland Transport outdoor contract up for renewal soon, it’s an opportune time to bring radio into the mix.
‘Radio and outdoor have always gone well together’
“Radio and outdoor have always gone well together. So I think to combine the smarts from the Australian business and the New Zealand business, we can really make it easier for those trans-Tasman clients,” says O’Neill.
MediaWorks boasts a portfolio of ten radio stations including The Rock and More FM, along with 92 digital billboards and over 200 static sites across New Zealand, but it’s had a complex history with private equity ownership.
“Look, they’ve got a good business. It needs to be loved a lot more, and it will be now, make no mistake about that,” says O’Neill. “We’ll get the best out of New Zealand and the best out of Australia, and we’ll sit and work out how to make it easier for the advertising agencies in both to deal with us, whether that be on a trading platform or on a strategic platform.”
Changes ahead
He stresses it’s too early to tell if there will be any structural team changes to the New Zealand business led by Wendy Palmer, but O’Neill’s strategy is simple and has the backing of major stakeholders, QMS chairman Barclay Nettlefold and Quadrant.
“At the end of the day, the whole thing needs to be client focused. That’s where it’s all said and done. We’ve got to build the best assets. We’ve got to make sure that we have the easiest platforms to use and we can provide great solutions for our clients.
“There’s a lot of excitement in our business about this. Barclay Nettlefold has been spending a lot of time in New Zealand and we’ve got great support from Quadrant as well. They’re crunching the numbers and doing the deals, which is really good.
“But for us, it’s focusing on growing and working out how we can work closely with the radio assets down there, and really enhance the assets we’ve got.”
Speculation around ARN, SCA, and Nine
But the big question is obviously with the Australian media landscape in a state of flux, what does this move signal for QMS’s future?
Is a similar acquisition in Australia possibly with ARN or SCA on the cards? O’Neill’s reluctant to be drawn into that discussion.
“That’s probably a conversation you’d have to have with Quadrant, not with me,” he says. “We’ve really been focusing on delivering the results we need to. “
He’s a little less guarded about whether this move makes QMS a more attractive acquisition target, particularly for Nine, if their Domain windfall materialises.
“Well, there’s always speculation,” says O’Neill. “Quadrant have been in the business for a number of years, and as we know, private equity firms generally make decisions to move on.
“But what I can say is Quadrant are very committed. You know, they worked with us through that bloody terrible COVID period. We’ve got a wonderful relationship with Ryan Boers and Chris Hadley and and they love our space. They love where the business is going and they’ve been really supportive the whole way through.
He adds carefully, “With TV networks and radio networks, there’s always discussion and opportunities. And I think if it’s easier for clients to buy it, it would be something that would work really well.
“I don’t really go too much into that speculation, because there’s been so many people talking about it for such a long period of time, so we just have to see what happens. I mean, will Channel Nine sell Domain? Will that happen? I’m not sure.”
MOVE2
One thing O’Neill is confident about is the potential for Ooh and the confidence that will grow as media planners see the scope, particularly with the launch of updated measurement system, MOVE2.
“We’re certainly going to be the platform over the next five to 10 years that probably evolves the most,” he says confidently. “We’ve gone from a from a static environment to 98% digital.
“You can update creative, so we’ve got this wonderful communication platform that I personally think is going to go to the moon. I think it’s incredible.
“I think our challenge in education is to get as much information around accountability, verification, flexibility. It’s a bloody good medium, and it’s going to get even better.”