News: Fairfax, Macquarie in merger talks

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Fairfax Media Limited(ASX:FXJ) and Macquarie Radio Network Limited(ASX:MRN) are in talks about a potential merger that would create a national radio network with more than $150 million in annual revenue, according to media reports.

 

Two years after talks between the two companies collapsed, Fairfax and Macquarie are reported to be in preliminary discussions about forming a venture in which Fairfax would retain management control and a majority stake.

 

Fairfax Media operates seven metropolitan radio licences across Australia. These assets reported $105 million in revenue for 2013 and were recently valued by Morgan Stanley at between $167 million and $297 million.

 

Macquarie Radio operates two Sydney metropolitan AM radio stations. It also owns eight stations based in regional Queensland, and a public relations agency. 

 

Fairfax booked a net loss of $971,000 in fiscal 2013.