Sports Entertainment Group (ASX: SEG) has reached agreement to acquire 100% of New Zealand audio operator MediaWorks for an enterprise value of NZ$130 million (about A$107.4m), in a move that would instantly create a cross‑Tasman audio, digital and entertainment group.
Deal terms, scale and timing
The transaction is structured on a cash and debt‑free basis and, subject to customary conditions including approval from the New Zealand Overseas Investment Office, is targeted to complete on 1 October 2026. SEG plans to fund the purchase with a combination of cash on hand, debt facilities and equity raising — including an A$11.7m placement and an associated share purchase plan.
- Price: NZ$130m enterprise value (cash and debt‑free)
- Funding: existing cash, debt and equity raising (A$11.7m placement referenced)
- Regulatory: subject to New Zealand Overseas Investment Office approval
- Target completion: 1 October 2026
Audience reach and financial profile
SEG says the combined group would reach in excess of 5 million weekly listeners. MediaWorks alone reaches about 2.4 million weekly listeners and claims roughly 59% audience share among New Zealand listeners aged 25 to 54; its streaming platform rova attracts over 540,000 monthly active users.
For the 12 months to 30 June 2026, MediaWorks delivered A$131.2m of revenue and A$18.1m of EBITDA. SEG has presented pro forma figures showing the combined operations would have produced pro forma EBITDA of approximately A$36.1m before synergies and A$41.1m after identified savings.
| Metric | Value |
|---|---|
| MediaWorks revenue (12 months to 30 June 2026) | A$131.2m |
| MediaWorks EBITDA (same period) | A$18.1m |
| Combined pro forma EBITDA (before synergies) | A$36.1m |
| Combined pro forma EBITDA (after synergies) | A$41.1m |
| Price to MediaWorks 2026 budgeted EBITDA (pre‑synergies) | ~5.1x |
| Price to EBITDA (post‑synergies) | ~4.2x |
Strategic rationale and leadership
SEG described the purchase as a “transformational” expansion that would provide immediate leadership in the New Zealand market and a platform to broaden its sports, digital and entertainment offerings across both countries. The buyer has identified around A$5m of annual synergies.
“The acquisition of MediaWorks is a transformational step for SEG [that] gives us immediate market leadership in New Zealand, a highly complementary content offering, and a genuine platform to extend our sport, digital, and entertainment capability across the Tasman,”
MediaWorks’ current chief executive officer, Wendy Palmer, and her management team are expected to remain in place to run the New Zealand operations, SEG said. Executives on both sides will focus on integrating radio, streaming and digital advertising opportunities while maintaining the existing music and entertainment programming that underpins MediaWorks’ audience share.
Market implications and next steps
If completed, the deal would accelerate consolidation in Australasian audio and digital media at a time when scale is increasingly important for advertising revenue, streaming investment and content rights. SEG has forecast a 59% uplift in earnings per share before synergies — contingent on the successful completion of its placement and limited participation in the share purchase plan — emphasising the financial materiality of the acquisition for shareholders.
Regulatory clearance in New Zealand represents the next major milestone. Beyond that, close attention will fall on how SEG integrates MediaWorks’ linear radio brands with its Australian sports and digital assets, how quickly identified cost and operational synergies are realised, and whether the combined group can translate scale into stronger advertising growth and subscriber engagement across rova and other platforms.
For now, the agreement signals a decisive move by an ASX‑listed company to stitch together a trans‑Tasman audio network at a time of rapid change in the media landscape.
