Saturday, 29 December 2012

Fairfax - Can A Dead Duck Be Revived?

About two decades ago, I bought Fairfax newspapers.  The Age, to be exact.  Back then, The Age was a darned good paper.  It appeared to be balanced and importantly, unbiased and generally, a good, informative read.

What happened to send Fairfax Media into its current state of irrelevance?   Was it because ex Woolworths Director, Roger Corbett took the reins?  Is it because of the overt attempts to push a putrid Green agenda onto people with functioning brain cells?  Is it because Fairfax Media continues to employ journalists who appear to have carte-blanche to write rubbish that appeal only to a handful of inner-city latte types?  Is it because there is no such thing as decent fact checking practiced by scribes on the Fairfax payroll any more and sub-editing responsibilities have been trundled offshore?

Yesterday, Advertising Entrepreneur, John Singleton announced he has dipped his toe into the Fairfax pond, picking up about 1% of stock and later announcing he and Mining Magnate friend, Gina Rinehart may be hitching their wagons together.  Good on them!   Rinehart with an 18% holding, or thereabouts at the time, should have received a seat on the board as a matter of course.  Powers behind the Fairfax throne were not having a bar of that.  They were frightened of losing journalistic independence or some such rot.  Journalistic independence at The Age and Sydney Morning Herald?   Where?  I must have missed that particular show.  

Major shareholders should have a right to voice their opinions – not forced to sign some sort of in-house document that effectively emasculates them before they can be ushered into the hallowed chamber that is the boardroom.

Soon after she was denied a seat at the long table, Ms. Rinehart divested herself of around 3% of her Fairfax portfolio.

Just look at the share price at close of trade on Friday (28/12/2012) - $0.47.  Over the past five odd years, Fairfax share prices have taken a gutser.  You would think somebody in a leadership role would have been cognisant enough to notice that something in the machine had seized up.  Nope, nobody did and that’s why Fairfax Media, in print form, will probably not be alive in three years.  Unless the Gina and John team can flush the obstruction out of the pipe and allow fresh water to flow again.

Can they do it?  I’m not sure.  The blockage in that pipe may be too dense.   Calling in a pair of experienced plumbers now might be a futile exercise when the whole thing should have been ripped up and replaced years ago.

Poor little Greens Member (for the next few months) for Melbourne, Adam Bandt is wetting his pants about the Rinehart/Singleton threat to the Green-sympathetic broadsheets which are losing money hand-over-fist before his and everyone else’s very eyes.  You would think those Green types might have progressed to the level of entrepreneurs themselves and organised enough Solar-powered Beanie Raffles and Lentil Drives by now to raise funds to buy into Fairfax themselves.

Here’s Adsie foaming up a bit at the prospect the daily broadsheet version of Green Left Weekly might be under assault!
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Rupert or Gina? No thanks, say Greens

December 29, 2012 - 2:15PM

The Australian Greens are concerned that John Singleton and his long-time friend Gina Rinehart are teaming up to push for a significant say in Fairfax Media.

Mr Singleton and his partner, the venture capitalist Mark Carnegie, announced late on Friday that their Gutenberg Investments had purchased a stake in Fairfax, publisher of this website, and would align with fellow shareholder, Gina Rinehart.

However, Greens Acting Leader Adam Bandt said Mr Singleton's move was cause for concern.

"I'm very, very worried that up until now Gina Rinehart has been unwilling to sign on to some very basic principles of journalistic independence and if she's now joining forces with other Australian millionaires in an attempt to set the Australian media in a different direction, I think it's of great cause for concern," Mr Bandt told reporters in Melbourne.

"I don't want to wake up every morning and find that my newspaper choice is between Rupert Murdoch and Gina Rinehart.

"I think that will be a bad state of affairs for Australian democracy."

Mr Singleton said in a statement late on Friday that he had already met with Ms Rinehart, but discussions are at a "very early stage".

"It was clear to me from the start that there was a mutual interest in working together," he said.

"However it is important to state that both Gina and I believe that the lifeblood of Fairfax is the integrity and accuracy of its journalism.

"This in no way would be compromised if Hancock Prospecting and Gutenberg Investments had a significant say in the future of Fairfax."

But Mr Singleton said the Fairfax Charter of Independence should be reviewed.

"I was on the board of Fairfax when Sir Zelman Cowen was chairman of the board some 20 years ago, when the existing Fairfax Charter of Independence was drawn," he said.

"There is no reason why a group of eminent and experienced Australians should not review the charter to ensure and enable its relevance for today, and the current very challenging times for the media."

He also took a swipe at the board and its effectiveness.

"I think the current board has struggled to come to terms with the new environment, which is there for all to see in the share price and the lack of direction at the company," he said.

Mr Singleton's decision to buy into Fairfax followed the board's decision to "definitively closing the door" on a sale or joint venture of their radio assets to his Macquarie Radio Network.

AAP



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