Nine snaps up QMS as it dumps radio and accelerates digital-first pivot

Nine Entertainment has struck a landmark deal to acquire digital out-of-home company QMS Media from Quadrant Private Equity for $850 million, while simultaneously exiting broadcast radio in a decisive pivot toward higher-growth digital assets.

The twin transactions represent a net investment of around $601 million and mark a step change in Nine’s asset mix, with the company forecasting that digital growth businesses will account for more than 60% of group revenue by FY27.

Alongside the QMS acquisition, Nine will sell its broadcast radio portfolio – including 2GB, 3AW, 4BC, 6PR, 2UE, Magic1278 and 4BH – to the Laundy Family Office for a cash- and debt-free enterprise value of $56 million. The group will also transfer its Northern NSW television station NBN to affiliate WIN Network in a $15 million transaction, subject to shareholder and regulatory approvals.

“Our goal – to be Australia’s leading, digital-first media business,” Nine said in a statement.

“The reshaped portfolio meaningfully enhances Nine’s offering to advertisers as a unique cross-platform digital media proposition, combining Nine’s premium assets in streaming and broadcast, and publishing with QMS’s leading outdoor assets.”

Nine chief executive Matt Stanton said the moves represented a critical milestone in the company’s Nine2028 transformation strategy.

“Today’s announcements mark a critical milestone in our Nine2028 transformation,” Stanton said. “These transactions will create a more efficient, higher-growth, and digitally powered Nine Group for our consumers, advertisers, shareholders and people.

“This positions Nine well for the future, enabling the Group to withstand industry disruption and deliver long-term sustainable value to our shareholders.”

Stanton said acquiring QMS adds scale to Nine’s advertiser and agency relationships, while further diversifying revenue streams.

“Together with our existing media assets, the acquisition will allow Nine to offer customers a broader advertising solution and the use of tools such as Nine Ad Manager for more targeted and localised messaging across a wider set of customers,” he said.

“We also see the opportunity to promote and drive subscriptions for our publishing mastheads and Stan through leveraging any excess QMS inventory.”

Nine also flagged the strategic value of QMS as a national communications platform.

“The QMS network will provide Nine with a branded platform to support key national news and sporting moments and serve as a public service utility for governments at all levels in times of emergency or community need,” Stanton said.

“QMS is a highly complementary media platform, offering Nine the opportunity to drive significant value by leveraging our premium content on QMS screens and creating an unparalleled advertising proposition that spans from ‘sofa to street’.”

Nine said the radio divestment and NBN restructure would free up approximately $217 million in cash proceeds and tax-loss benefits, accelerating reinvestment into digital growth assets.

The QMS acquisition and radio sale are expected to complete before 30 June, subject to customary conditions.