Stuff Digital, the publisher of one of the country’s major news websites, is set to become half-owned by Trade Me in a significant move in the media sector.
The two companies jointly announced the deal this morning, saying it would close in the next few months. The value of the 50% stake being acquired was not disclosed.
It comes on the same day as Stuff’s primary competitor, Herald-owner NZME, appears ready to settle an attempted boardroom coup at its annual general meeting.
Stuff Group owner and publisher Sinead Boucher will chair a new board, with equal representation from both companies. A spokesperson for both companies said Stuff would retain operational control through the chairperson’s casting vote.
“This is the first time since the management buyout of Stuff five years ago that I have accepted an equity partner into the business,” she said.
“It was important to me that we found the right partner at the right time in our growth strategy, protecting our fiercely independent media business.”
She said the agreement “provides for brilliant new opportunities together, and for Stuff Group, continued investment in technology and talent for the future”.
Under the agreement, Stuff’s property section will become Trade Me Property branded, with listings, advertisements and some content shared across both platforms.
The deal notably excludes the Stuff Group’s Masthead Publishing business, which includes newspaper titles The Post, The Press, the Sunday Star Times and several magazine lines. It also excludes the group’s events and Neighbourly businesses.
Stuff Digital publishes the Stuff.co.nz website and produces the nightly television bulletin ThreeNews, which replaced Newshub on TV3 last year. In an interview published this morning, Boucher said Stuff’s 6pm bulletin, produced under contract, would continue.
The Stuff Group divisions, Stuff Digital and Stuff Masthead Publishing, were legally split into two separate companies last year. It followed Boucher’s acquisition of Stuff in 2020 for $1 from Nine, the Australian media conglomerate.
Trade Me chief executive Anders Skoe said: “This acquisition will enable vendors and agents to reach an even wider pool of prospective buyers while empowering buyers with every resource to navigate the property market with confidence.
“Together, we can generate the highest quality property market insights and keep all of Aotearoa informed. This will not only strengthen our existing offering, but enable us to continue to play a pivotal role in the Kiwi property journey.”
Trade Me is wholly owned by British private equity firm Apax Partners.
Boucher said editorial independence and integrity were intrinsic to Stuff, and that “Trade Me is committed to upholding Stuff’s editorial code of ethics and practice”.
The move lines up Stuff and Trade Me to compete head-on with NZME’s OneRoof product, which has grown significantly over the past several years.