Nine Entertainment (ASX:NEC) has unveiled a massive strategic overhaul of its portfolio, pivoting heavily toward digital growth assets.
The transformation is headlined by the $850 million acquisition of QMS Media, a leading digital outdoor advertising platform.
To fund its digital focus, Nine is exiting traditional segments by selling its broadcast radio assets (including 2GB and 3AW) to the Laundy Family Office and converting its NBN regional television station into an affiliate operated by the WIN Network.
This "step change" is projected to increase Nine's digital revenue from 45% in FY25 to more than 60% by FY27.
The QMS acquisition allows Nine to offer advertisers a "Sofa to Street" proposition, combining its premium streaming and publishing data with high-yield digital billboards.
Nine expects the move to be low-double-digit EPS accretive by FY26, supported by $20 million in annual cost synergies.
The restructure is highly efficient; the divestments and realignment trigger $178 million in cash tax benefits, offsetting the tax bill from Nine’s previous sale of its Domain stake.
While net leverage will temporarily rise to 1.8x, it is expected to return to the 1.0x–1.5x target range by FY27.
CEO Matt Stanton described the move as a "critical milestone" in the Nine2028 plan, ensuring the group remains resilient against industry disruption and AI-driven challenges.