Like this, Domainfax reporting on itself:
Private equity firm TPG knows it faces an uphill battle convincing Australian politicians that it has the best interests of independent journalism at heart as it forges ahead it with its $2.2 billion bid for Fairfax Media.
It is no secret the main prize for TPG is Fairfax’s fast-growing real estate advertising business Domain, which makes up the bulk of the company’s market value.
However, TPG is arguing it needs the company’s three metropolitan newspaper mastheads to thrive as part of the package.
That is why a large proportion of a seven-page letter TPG sent to the Fairfax board on Friday is focused on the TPG’s consortium’s commitment to maintaining premium content and independent journalism.
It will also take the argument to Canberra that there is nothing private equity will do to further cut costs within the company’s media assets that Fairfax chief executive Greg Hywood does not already have on the table.
Good one!
However, I support the buyout. TPG can’t do a worse job of journalism than Flufferfax and its horrifying plan. Giving it to American private equity will be a big boost to The Guardian and new media, as well as shed any sentiment Australians have for the realty parasite.
