Fairfax Media confirmed it received an "unsolicited approach from a consortium led by private equity company TPG capital," according to Mathew Dunckley of the SYDNEY MORNING HERALD. Fairfax CEO Greg Hywood wrote to staff on Sunday confirming the "preliminary indicative" proposal and pointing out it was "still subject to a number of conditions" including approval by the Foreign Investment Review Board. Hywood said that TPG's proposal would see it acquire Domain, Australian Metro Media and the company's "events and digital ventures." The deal's proposed structure would mean shareholders "would receive cash for the assets TPG bought and scrip for the company holding Fairfax's New Zealand business," its regional and community newspapers, radio assets and a 50% share of online streaming network Stan (SMH, 5/7). ABC's Peter Ryan reported the Domain business is regarded as the "jewel in the Fairfax crown" -- a "far cry" from the days when revenue from classified advertising in newspapers was described as "rivers of gold." It comes as Fairfax Media "prepares to sack" as many as 125 full-time equivalent positions from its metropolitan newsrooms as part of the latest cost-cutting measures. Hywood said that the TPG proposal was "preliminary" and that no decision has been made (ABC, 5/7).
