James Packer ceded control of his family’s media empire after more than 70 years in a move described as 'historic' by Prime Minister John Howard.
SYDNEY: Australia’s richest man James Packer on Friday ceded control of his family’s media empire after more than 70 years in a move described as “historic” by Prime Minister John Howard.
Packer, a third generation media mogul, sold a 25% stake in his media interests to private equity group CVC for A$725 million ($600 million), giving CVC a total of 75% and overall control.
The media empire includes Australian Consolidated Press (ACP) magazines, established by Packer’s grandfather Sir Frank in 1933, and Channel Nine, which his father Kerry built into Australia’s top television network.
Packer took control of Publishing and Broadcasting Limited (PBL) after the death of his father Kerry in December 2005 and since then has concentrated on expanding its casino and gaming interests.
The move confirms speculation since James Packer’s ascension that he was more interested in the gaming side of the business than its media operations, particularly as Channel Nine has struggled recently to retain its top spot.
The Packers have had a massive influence on the Australian media, eclipsed only by News Corp’s Rupert Murdoch.
Prime Minister John Howard, whose changes to media foreign ownership laws last year allowed CVC to buy its stake, paid tribute to the family. “The Packer family has contributed massively to the media, and in particular in television, and that family and that name will always be associated with excellence and good things in television. So it is quite an historic day,” Howard told reporters.
“It reminds you of the massive contribution of James’ grandfather and of course his famous father and he himself is charting his own way in the business community as you would expect. I wish him well.”
Channel Nine slipped from Packer control once before, when Kerry sold it to disgraced businessman Alan Bond for one billion dollars in 1987, only to buy it back at about half that price three years later.
The latest deal with CVC includes ticketing business Ticketek and Acer Arena interests, as well as PBL’s stake in Sky News Australia.
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