Empire grows as Seven West Media takes control of Community Newspapers
Perth's community media landscape continues its wild ride with Monday's announcement that Seven West Media would acquire the remaining 50.1 per cent of shares in its Community News joint venture with Rupert Murdoch's News Corp for an undisclosed sum.
Community News staff were told at lunch time on Monday that Seven West Media (ASX: SWM) would take control of the company and operations would move from its current Stirling Street, Northbridge headquarters to Seven West headquarters in Osborne Park by July 1.
Community News publishes 12 newspaper titles covering the Perth metro and outer suburban areas such as the Stirling Times, Canning Times and Mandurah Coastal Times. It also has 17 digital mastheads.
WAtoday understands the group's Mandurah office would remain open.
Insiders said the mood at the meeting was sombre but they were not surprised given there were talks of a possible move late last year.
In an email to staff, Seven West Media chief executive Maryna Fewster said Community News was a business the company was very familiar with and it would complement their existing audiences and media assets in WA.
"We are delighted that Community News is joining the Seven West Media family and we look forward to welcoming the team when they arrive on 1st July," she said.
Ms Fewster said chief operating officer Adam Everett will have full oversight of Community News and would work closely with its chief executive Paul Eteen-Bliss.
News Corp Australasia executive chairman Michael Miller said he was proud of the company's association with Community News.
"We want the best for its future which is why we believe the time is right for it to be consolidated within the broader portfolio of Seven West Media," he said.
Community Newspaper Group was first incorporated in 1985.
The decision was made so the company could 'focus investment on papers with solid readership and strong advertising market share'.
Seven West Media already publishes several metro and regional community papers such as the Sound Telegraph and the South Western Times.
Community News' biggest competitor has also been touched by shifting media ownership in the past 12 months.
In April, Nine (the owner of WAtoday) announced it would sell its Australian Community Media & Print arm, which publishes papers such as the Mandurah Mail, to Australian businessman Antony Catalano for $125 million.
Seven West Media shares dipped three cents from the open to 51 cents.