Lauchlin Murdoch’s Influence at CMH Felt.
January 24, 2008 by Geoff Jennings
Lachlan Murdoch is back in business with his old One. Tel mate James Packer as part of a $3.3 billion joint deal to privatise Consolidated Media Holdings. What does this mean for Seek.com.au, of which CMH has a 27% interest?
They will receive $4.06, plus 0.1116 of a Seek share, for each CMH share that they hold, valuing their shares at $4.80. However, shareholders will be able to receive more in cash or shares.
Time will tell. But is the demise of 120-odd-year-old ACP publication The Bulletin indicative of Mr Murdoch’s plans for rampant cost-cutting? True, it must be difficult to justify the costs of the magazine when most folks receive their news and current affairs from the Internet. However, it shall be interesting to monitor the changes these two new bedfellows bring about and what impact such changes make on interests concerned with the recruitment sector, such as Seek.
It is not expected that there will be any impact at all to the day to day operations, management or board of SEEK.
I think where you’re misunderstanding things is the ‘they’ in your quote, which does not refer to the future owners of CMH ie James Packer & Lachlan Murdoch but refers to the existing shareholders of CMH.
As those existing shareholders sell out to James Packer & Lachlan Murdoch, they have a choice between receiving cash and/or SEEK shares.
The only impact therefore may be an adjustment to the shareholder registry of SEEK depending on the investment choices of the existing shareholders of CMH.