The Australian media giant, Fairfax, is considering selling one of its prize assets, the online auction site TradeMe.
Founded by Wellington entrepreneur Sam Morgan, Fairfax paid $700 million for TradeMe five years ago, and the company has continued to flourish ever since.
Fairfax is currently streamlining their operations to combat a reported $2.5 billion debt, leading to speculation the sale of TradeMe, which some commentators value at around $1.3 billion, would be a quick fix to the company’s financial problems.
Following a drop in Australian consumer confidence which caused advertising revenue to fall, Fairfax is selling off their radio arm and making around 80 redundancies in their sub-editing areas.
If TradeMe is sold or partially sold it could provide an investment opportunity for New Zealanders, says investment analyst Brian Gaynor.
He says a share offering would likely be in the New Zealand rather than Australian market, with the majority of shares bought and sold in New Zealand.
“TradeMe is a pure New Zealand phenomenon… it would be very attractive to New Zealanders because they understand it, I doubt it would have the same appeal in Australia,” he says.
Fairfax could not be reached for comment.
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