Fairfax sells Stayz for $220m
The sale represents a windfall for Fairfax, which acquired the business in 2005 for $12.7 million. Analysts recently put a value of $140 million on the business.
Fairfax chief executive Greg Hywood said in a memo to staff the media group had received some initial approaches for the business "that were compelling". This prompted a competitive sale process for Stayz. The sale price outweighs Fairfax's net debt of $154 million at June 30.
Mr Hywood said the sale showed Fairfax can "clearly can add real value to digital businesses".
The interest in Stayz follows last year's sale of Fairfax's remaining stake in New Zealand online auction house Trade Me for $616 million. More recently, investors have speculated the media publishing company might pursue a float of its real estate business, Domain, as a separately listed company.
Fairfax, which owns The Age and The Sydney Morning Herald, said the sale price represented a multiple of 16.8 times Stayz's financial 2013 earnings.
Frequently Asked Questions about this Article…
Fairfax Media sold Stayz after receiving compelling initial approaches, which led to a competitive sale process. The sale aligns with Fairfax's strategy to add real value to its digital businesses.
Fairfax Media sold Stayz to US-listed holiday rentals group HomeAway for approximately $220 million.
The sale of Stayz was a significant financial success for Fairfax Media, as they acquired the business for $12.7 million in 2005 and sold it for $220 million, far exceeding analysts' valuation of $140 million.
The sale of Stayz positively impacts Fairfax Media's financial position by outweighing its net debt of $154 million as of June 30.
The successful sale of Stayz demonstrates Fairfax Media's ability to add real value to its digital businesses, reinforcing its strategy to focus on digital growth.
Prior to the Stayz sale, Fairfax Media sold its remaining stake in New Zealand online auction house Trade Me for $616 million.
There is speculation among investors that Fairfax Media might pursue a float of its real estate business, Domain, as a separately listed company.
The sale price of Stayz represented a multiple of 16.8 times its financial 2013 earnings, highlighting the strong financial performance and value of the business.
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