Packer backs away from talk of reclaiming ailing Nine

BILLIONAIRE media heir James Packer has moved to quash suggestions his Consolidated Press Holdings was poised to pounce on the ailing Nine Network, telling an audience of Perth business leaders free-to-air television was not on his radar "at the moment".

By InvestSMART · 15 Dec 2011

By InvestSMART ·
15 Dec 2011

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Mr Packer, who owns 9 per cent of Ten Network, sought to distance himself from rumours he was poised to take back the debt-laden Nine Entertainment that he sold to private equity group CVC Asia Pacific at the top of the market in 2006.

Nine's woes since have sparked talk Mr Packer may want to repurchase the network, in the process emulating the feat of his late father Kerry, who sold Nine to Alan Bond only to repurchase it for a fraction of the price when Mr Bond's empire was crumbling.

"In the free-to-air space, which our family has been associated with historically, Kerry [Stokes, Seven West Media chairman], Peter [Seven Group chief executive] Gammell] and [Seven West chief executive] David Leckie ... have done an amazing job taking the Seven Network to where it is today," Mr Packer said.

"I can't see us as a company going back aggressively into the free-to-air industry at the moment. Seven's position is too strong."

It comes as CVC struggles to restructure Nine's near-$4 billion debt load, which is being haggled over by hedge funds and a group of Nine's original lenders.

CVC has insisted there is no urgency to refinance before Nine's February 2013 deadline, providing the network remains within its banking covenants.

Mr Packer made the comments yesterday after unveiling plans to rebrand the Burswood Entertainment Complex as Crown Perth, in line with the Melbourne and Macau operations, in a bid to attract a higher share of the lucrative VIP market from Asia.

The name change will bolster Crown's ability to compete against emerging regions.

The West Australian

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Frequently Asked Questions about this Article…

Did James Packer say he plans to buy back the Nine Network?

No. James Packer moved to quash suggestions his Consolidated Press Holdings was poised to pounce on the ailing Nine Network, saying free-to-air television was not on his radar "at the moment."

Why were there rumours James Packer might repurchase Nine Entertainment?

Rumours arose because Nine has struggled since Packer sold it to private equity group CVC Asia Pacific in 2006, and observers pointed to historical examples of media owners repurchasing assets when prices fell.

What is Nine Entertainment's current financial situation as reported in the article?

The article says Nine is carrying a near-$4 billion debt load that CVC is trying to restructure, with hedge funds and a group of Nine's original lenders haggling over terms.

What has CVC Asia Pacific said about refinancing Nine's debt?

CVC has insisted there is no urgency to refinance before Nine's February 2013 deadline, provided the network remains within its banking covenants.

Does James Packer have any stake in other Australian TV networks?

Yes. The article notes James Packer owns a 9% stake in the Ten Network.

What did Packer say about the Seven Network and its leadership?

Packer praised figures associated with Seven — Kerry Stokes, Peter Gammell and David Leckie — saying they have done an amazing job and that Seven's position is currently too strong for his company to re-enter free-to-air aggressively.

What rebranding did James Packer unveil for his gaming and hospitality business?

Packer unveiled plans to rebrand the Burswood Entertainment Complex as Crown Perth, aligning it with Crown's Melbourne and Macau operations to attract a higher share of the lucrative VIP market from Asia.

What might these developments mean for everyday investors watching media and gaming stocks?

Based on the article, investors should note that Packer is not actively pursuing a return to free-to-air, Nine is dealing with a large debt restructuring under CVC, and Crown is pursuing growth via the Crown Perth rebrand — all factors that could influence investor sentiment and sector dynamics without implying specific investment advice.