Detractors cannot stop Nine Entertainment on its venture to acquire stakes of Fairfax Media.
Without opposition, the directors of Fairfax Media have recommended the voting in favor of the Fairfax Media-Nine Entertainment merger.
Critics who do not support the deal persist like former Australian Prime Minister Paul Keating and Australian politician and government opposition head William Shorten.
They expressed their skepticism over the agreement. The Media, Entertainment, and Arts Alliance also contended that the settlement would diminish the coverage of issues in Australia which are of national public interest.
Antony Catalano, the former chief executive officer of Domain, makes the deal further controversial.
The domain is an Australian real-estate and digital property portal in which Fairfax Media is the controlling shareholder.
Catalano made a last-minute rescue bid to terminate the $4-billion ($293 billion) consolidation of the media company to Nine Entertainment.
In a letter to Nick Falloon, the chairman of Fairfax Media, Catalano stated that he does not support the deal anymore.
The former CEO of Domain holds a 1.2 percent stake in the media firm. He said that as the former leader of Domain, he has an exceptional knowledge of the establishment.
He said he could offer important support in making the best of Domain’s value for the shareholders of Fairfax Media and an action plan for the balance of the important assets of the company.
The shareholder vote for the merger of Fairfax Media and Nine Entertainment would result in the reduction of five major media players in Australia into four.
Nine Entertainment’s free-to-air TV network is expected to expand with its accessions of newspapers like The Australian Financial Review, the Age, and Sydney Morning Herald.
The new business would gain a 54.5 percent stake in the Macquarie Media radio network as well as substantial stakes in streaming service, Stan, and Fairfax Media’s majority shares in real estate website, Domain.
In its scheme brochure, Fairfax Media stated that the merger combines two largely complementary business ventures, resulting in a multi-platform media firm with reach across digital, radio, print, and TV.
In today’s dynamic and shifting media market, the cross-platform capabilities and diversified asset portfolio of the new business would facilitate enhanced audience engagement.
On November 27, the Nine Entertainment-Fairfax Media deal is facing a concluding court approval.
Fairfax Media chief executive officer Greg Hywood is looking forward to the official completion of the agreement on December 10 while Nine Entertainment expects it by December 7.