Via the AFR:
Fairfax Media has launched a strategic review of its Domain business with a view to spinning off the real estate group into a separate ASX vehicle that would remain controlled by Fairfax.
…The media group would retain between 60 per cent and 70 per cent of Domain under the separation plan, which is designed to allow the market to place a value on the Domain business, long considered the most valuable part of the wider Fairfax group.
Could this help free the broader media rump from its realty corruption? Doubtful.
Domainfax old media is now a loss leader for Domainfax new media. The old is worthless by itself but the new is worth more with the old given the traffic it drives.
No real change to incentives in the business here. I mean, check out the financials, via Goldman (look at EBITDA):
This is a media firm that is fighting for its life and losing.
