Fairfax Media

Fairfax Media was an Australian and New Zealand media company that developed from John Fairfax's 1841 purchase of The Sydney Morning Herald. For much of its history, the business was associated with the Fairfax family and became one of Australia's most important newspaper publishers. Its portfolio eventually extended beyond metropolitan newspapers into regional and community publishing, magazines, radio, digital classified and editorial businesses, events, printing, and investments in emerging online and streaming ventures. The company’s principal publishing assets included The Sydney Morning Herald, The Age in Melbourne, The Australian Financial Review, The Canberra Times, The Newcastle Herald and The Illawarra Mercury. It also operated or invested in New Zealand publishing, online properties, radio stations and digital businesses. Among its better-known digital assets and investments were Trade Me, RSVP, Stayz, InvestSMART, Allure Media and websites associated with brands such as Business Insider, Gizmodo and Lifehacker. Fairfax also participated in the launch of Stan, the Australian streaming service established with Nine Entertainment. The group changed substantially during the late twentieth and early twenty-first centuries. It lost family control after the heavily leveraged 1987 takeover led by Warwick Fairfax collapsed in 1990, then returned to the Australian Securities Exchange in 1993. The 2007 merger with Rural Press expanded its regional, agricultural and publishing interests and prompted the name change from John Fairfax Holdings to Fairfax Media. Like other newspaper groups, Fairfax faced falling print advertising, audience migration to digital media and pressure on its share price. It responded with acquisitions, digital expansion, newsroom restructuring, paywalls and changes to print formats, while also reducing staff and closing printing facilities. On 26 July 2018, Fairfax Media and Nine Entertainment Co. announced an agreed merger. The resulting company was owned 51 percent by Nine shareholders and 49 percent by Fairfax shareholders. Fairfax was delisted from the Australian Securities Exchange in December 2018 and ceased to exist as an independent listed company. Several metropolitan mastheads continued under Nine Publishing, while community media and other assets were subsequently separated, sold or reorganized. The Fairfax name therefore remains historically important in Australian journalism even though the standalone corporate group is defunct.

Fairfax Media traced its origins to John Fairfax’s purchase of The Sydney Morning Herald in 1841. The Fairfax family retained control for generations, and the business operated under names including John Fairfax and Sons and John Fairfax Holdings. During the postwar period it expanded from its Sydney base. The Australian Financial Review was established in 1951, Fairfax acquired The Sun in 1953, and the group entered television through ATN and QTQ. In the 1960s it broadened its newspaper holdings through acquisitions including The Age, The Newcastle Herald and The Illawarra Mercury. The company’s television and publishing strategy was affected by competition and regulatory pressures. During the 1970s, the cost of defending its position against Rupert Murdoch’s attempted acquisition of The Herald and Weekly Times contributed to Fairfax selling television assets, including the Seven Network. In 1988, its magazine portfolio was sold to Australian Consolidated Press. The Sydney afternoon tabloid The Sun was discontinued, with elements of its content and the City to Surf sponsorship associated with The Sun-Herald. In 1987, Warwick Fairfax used substantial borrowing to acquire the family’s remaining holdings. The transaction temporarily returned ownership to a member of the Fairfax family but created a highly leveraged structure. On 10 December 1990 the company collapsed under debt reported at approximately A$1.7 billion and a receiver was appointed. The business was restructured and relisted on the Australian Securities Exchange in 1993. Its ownership then included major outside investors, although Australian media-ownership restrictions limited the ability of some shareholders to increase their stakes. The Fairfax family’s long period of control had effectively ended. During the 2000s, Fairfax pursued geographic and digital expansion. In 2003 it acquired the publishing assets of Independent Newspapers in New Zealand, bringing several prominent New Zealand newspapers into the group. It bought the dating service RSVP, the accommodation website Stayz, the online investment business InvestSMART and the New Zealand auction platform Trade Me. In 2007 it merged with Rural Press, expanding its regional, agricultural and community publishing interests and regaining control of The Canberra Times. On 12 January 2007, John Fairfax Holdings adopted the Fairfax Media name. Fairfax also developed new digital and broadcast properties. It launched Brisbane Times and BusinessDay.com.au, acquired radio assets previously associated with Southern Cross Broadcasting, and invested in online publishers and classified services. The group’s transformation was accompanied by staff reductions and increasing concern over the sustainability of print journalism. In 2007, management announced cuts affecting Australia and New Zealand, prompting the Media, Entertainment & Arts Alliance campaign “Fair Go, Fairfax: Don’t discount journalism.” From 2010 onward, Fairfax attempted to rebalance its portfolio. The company introduced digital paywalls, changed the physical format of major newspapers, closed printing facilities and reduced its workforce. It acquired or developed online properties through Allure Media and related businesses, while selling some investments such as Stayz and InvestSMART. Fairfax also faced shareholder disputes. John B. Fairfax’s family investment vehicle sold its remaining stake in 2011, while Gina Rinehart accumulated a substantial holding in 2012 and sought board representation. She was not appointed after declining to accept the company’s editorial-independence requirements and later sold her stake. The final period involved greater diversification and eventual consolidation. Fairfax invested in Stan with Nine Entertainment in 2014, entered a radio joint venture with Macquarie Radio Network and partnered with The Huffington Post to launch HuffPost Australia in 2015. At the same time, print declines, job reductions and competitive pressure continued. After competing takeover proposals in 2017, Fairfax agreed to merge with Nine Entertainment in July 2018. The transaction gave Nine shareholders 51 percent and Fairfax shareholders 49 percent of the combined entity. Fairfax was delisted in December 2018. Its metropolitan publishing operations continued within Nine Publishing, while community media and other assets were subsequently divested or reorganized.

• 2018

  Merger with Nine Entertainment announced

  [1]Fairfax Mediaen.wikipedia.org

  Fairfax and Nine agree to combine their businesses, ending Fairfax’s independent corporate existence.

• 2014

  Stan joint venture established

  [1]Fairfax Mediaen.wikipedia.org

  Fairfax invests in the streaming service Stan in partnership with Nine Entertainment.

• 2012

  Digital paywalls and major restructuring announced

  [1]Fairfax Mediaen.wikipedia.org

  Fairfax announces digital paywalls, print-format changes, printing-plant closures and approximately 1,900 job cuts.

• 2007

  Rural Press merger and corporate renaming

  [1]Fairfax Mediaen.wikipedia.org

  The Rural Press merger expands regional and agricultural holdings, and John Fairfax Holdings changes its name to Fairfax Media.

• 2003

  New Zealand publishing expansion

  [1]Fairfax Mediaen.wikipedia.org

  Fairfax acquires publishing assets from Independent Newspapers, strengthening its presence in New Zealand.

• 1993

  Fairfax returns to the ASX

  [1]Fairfax Mediaen.wikipedia.org

  The restructured company is relisted on the Australian Securities Exchange.

• 1990

  Leveraged ownership structure collapses

  [1]Fairfax Mediaen.wikipedia.org

  The company enters receivership after the highly leveraged Warwick Fairfax takeover collapses, with reported debts of about A$1.7 billion.

• 1960

  Expansion into additional Australian newspapers

  [1]Fairfax Mediaen.wikipedia.org

  Fairfax expands its newspaper holdings, including acquisitions such as The Age, The Newcastle Herald and The Illawarra Mercury.

• 1951

  The Australian Financial Review is founded

  [1]Fairfax Mediaen.wikipedia.org

  The business newspaper later associated with Fairfax becomes part of the group’s metropolitan publishing identity.

• 1841

  John Fairfax purchases The Sydney Morning Herald

  [1]Fairfax Mediaen.wikipedia.org

  John Fairfax’s acquisition of The Sydney Morning Herald established the publishing foundation from which the Fairfax media group developed.

A major Australian media group built around trusted newspaper mastheads, regional publishing and a growing portfolio of digital, radio and media-adjacent businesses.

• Metropolitan newspaper · 1831

  The Sydney Morning Herald

  A flagship Sydney newspaper acquired by John Fairfax in 1841. It became one of Fairfax Media’s principal general-news mastheads, covering national and international affairs, politics, business, culture and local issues. The title later continued under Nine Publishing after the Fairfax–Nine merger.

• Metropolitan newspaper · 1854

  The Age

  A major Melbourne newspaper and one of Fairfax Media’s core metropolitan publications. Its coverage combined Victorian affairs with national and international reporting, opinion, business and culture. It continued as a masthead within Nine Publishing after Fairfax ceased to operate independently.

• Business newspaper · 1951

  The Australian Financial Review

  A leading Australian business and financial news publication founded in 1951. It was central to Fairfax’s premium journalism portfolio and served professional, corporate, investment and policy audiences through print and digital editions.

• Regional and metropolitan newspaper · 1926

  The Canberra Times

  A Canberra-based newspaper that became part of Fairfax’s expanded regional publishing portfolio, including through the Rural Press merger. It provided local, national and political coverage and later continued under successor ownership.

• Online marketplace · 1999

  Trade Me

  A New Zealand online auction and marketplace business acquired by Fairfax in 2006 for NZ$700 million. It represented one of the group’s most significant digital acquisitions and broadened Fairfax beyond conventional publishing.

• Online accommodation marketplace

  Stayz

  An online accommodation business acquired by Fairfax in 2005. Fairfax later sold it in 2013, demonstrating the value that could be realized from the group’s digital ventures.

• Streaming joint venture · 2015

  Stan

  An Australian subscription streaming service created as a joint venture between Fairfax Media and Nine Entertainment in 2014. The investment connected Fairfax’s publishing business with on-demand video distribution.

• Digital publisher · 2015

  HuffPost Australia

  A digital news and opinion partnership launched by Fairfax Media and The Huffington Post in 2015. It extended Fairfax’s online editorial presence through a locally oriented version of the international publishing brand.

• 2007Fair Go, Fairfax: Don’t discount journalism

  Australia · New Zealand

  The Media, Entertainment & Arts Alliance organized a campaign opposing Fairfax’s planned staff reductions. It argued that newsroom job losses could weaken the quality and breadth of journalism.

  Outcome. The announced reductions proceeded as Fairfax continued restructuring its publishing operations.

  Source

• 2018

  Merger with Nine EntertainmentM&A

  Background

  Fairfax faced continuing structural pressure in print media while Nine sought to combine complementary broadcast, publishing and digital assets.

  Action taken

  Fairfax and Nine agreed to merge, with Nine shareholders receiving 51 percent and Fairfax shareholders 49 percent of the combined entity.

  Aftermath

  Fairfax was delisted in December 2018. The metropolitan publishing assets continued under Nine Publishing, while other assets were later sold or separated.

  Source

• 2014

  Investment in StanProduct launch

  Background

  Fairfax sought exposure to emerging digital video markets and partnered with Nine Entertainment.

  Action taken

  The companies established the Stan streaming joint venture, with Fairfax investing A$50 million.

  Aftermath

  Stan became part of the broader digital media portfolio associated with the eventual Nine group.

  Fairfax investment. A$50 million (2014)

  Source

• 2012

  Paywalls, compact print editions and restructuringStrategy

  Background

  Declining print advertising and changing news consumption made the traditional metropolitan newspaper model less sustainable.

  Action taken

  Fairfax announced digital paywalls for The Sydney Morning Herald and The Age, compact print editions, closure of the Chullora and Tullamarine printing facilities and approximately 1,900 job cuts.

  Aftermath

  The measures accelerated Fairfax’s digital transition but produced substantial industrial and editorial opposition.

  Expected annual savings. A$235 million (Expected over three years from 2012 announcement)

  Source

• 1990

  Receivership after leveraged takeoverOther

  Background

  The 1987 acquisition of the family’s holdings by Warwick Fairfax relied on substantial borrowing and left the company vulnerable to financial distress.

  Action taken

  The company entered receivership on 10 December 1990 and underwent restructuring.

  Aftermath

  Fairfax later returned to the ASX in 1993, but the Fairfax family’s historic control had ended.

  Reported company debt. A$1.7 billion (1990)

  Source

1. 1Fairfax Mediaen.wikipedia.org