ARN Media offices at North Ryde, showing the above the door signage of their popular radio station logos.

ARN Media acquires 14.8% of Southern Cross Austereo



On Tuesday ARN Media Limited (ASX: A1N) purchased 14.8% of Southern Cross Media Group Ltd (ASX: SXL) for $38.3 million. If it’s good enough to buy 14.8%, why not buy all of it?

Companies often acquire a minor stake in another company for various strategic reasons. This article will explain the motivations behind such investments and shed light on the benefits they can bring.

When a company decides to purchase a minor stake in another company, it typically aims to gain several advantages.

Closer Relationships

Firstly, acquiring a stake allows the investing company to establish a closer relationship with the target company. By becoming a shareholder, the investor gains a seat at the table, enabling them to participate in decision-making processes. This increased involvement can lead to better collaboration, shared resources, and mutually beneficial partnerships.


Furthermore, buying a minor stake in another company provides the investing company with an opportunity to diversify its portfolio. By investing in different industries or sectors, companies can spread their risks and reduce their exposure to any single market. This diversification strategy helps protect the investing company from potential downturns in its primary industry. Likewise, it allows for potential growth in new areas.

Financial Gain

Another motivation for acquiring a minor stake is the potential for financial gains. If the target company performs well and its stock value increases, then the investor stands to benefit from capital appreciation. Additionally, the investing company may receive dividends if the target company distributes profits to its shareholders. These financial returns can provide an additional revenue stream for the investing company and contribute to overall profitability.

Strategic Advantage

Moreover, acquiring a minor stake in another company can offer strategic advantages. It allows the investing company to gain access to the target company’s expertise, technology, or intellectual property. This access to valuable resources can enhance the investing company’s competitive position in the market. Furthermore, it may provide an avenue for knowledge-sharing and the exchange of best practices between the two companies. Both points lead to operational improvements, synergies, and accelerate growth and innovation.

Alliances & Partnerships

In some cases, acquiring a minor stake in another company is a strategic move to build alliances or partnerships. The investing company may seek to forge a stronger relationship with the target company. The stronger relationship allows them to explore joint business opportunities or leverage each other’s strengths. This collaboration can lead to shared research and development initiatives, expanded market reach, or cost-sharing arrangements. Ultimately, these alliances can create a win-win situation for both companies, unlocking new growth prospects and competitive advantages.

Specifically, for this acquisition, The Broadcasting Services Act 1992 is why ARN Media only took 14.8%.  The Act prohibits any one media company from holding more than two commercial broadcasting licenses in any one market. By taking less than 15%, ARN Media avoid being counted as holding the existing licences held by Southern Cross Austereo.

The Broadcasting Services Act 1992

The Broadcasting Services Act 1992 (Commonwealth) (the Act) is legislation that governs broadcasting and media services in Australia. This section provides a background on the Act, highlighting its key provisions and impact on the Australian media landscape.

Enacted by the Australian government, the Act regulates and promotes diverse and high-quality broadcasting services throughout the country. The Act sets out the legal framework for the provision and regulation of television and radio services. It also regulates related digital media platforms.

Cultural & Social Diversity

A primary objective of the Act is to ensure that broadcasting services in Australia reflect cultural and social diversity. It emphasises the provision of a broad range of programming that caters to the interests and needs of various communities. This objective is aimed at promoting media plurality, fostering public discourse, and enhancing democratic values.

The Act establishes the Australian Communications and Media Authority (ACMA). ACMA is the regulatory body responsible for overseeing compliance with its provisions. ACMA is entrusted with licensing broadcasters, enforcing industry codes of practice, and safeguarding community standards in broadcasting. The authority plays a pivotal role in monitoring and regulating content to ensure it aligns with the Act’s objectives.

Licensing Requirements

Under the Act, broadcasting services in Australia are subject to various licensing requirements. Broadcasters must obtain licenses from ACMA, which include conditions and obligations regarding:

  • content standards,
  • advertising limitations,
  • local content quotas, and
  • compliance with industry codes of practice.

These licensing provisions help maintain quality standards, protect consumers, and uphold community expectations.

Ownership and Control

Additionally, the Broadcasting Services Act 1992 addresses ownership and control of media organisations. It sets out rules and limitations on media concentration to prevent excessive consolidation and promote a diverse media landscape. The Act restricts cross-media ownership, ensuring that one entity cannot own multiple forms of media in the same market. This includes television, radio, and newspapers. The restrictions preserve media plurality and prevent undue influence over public opinion.

Content Restrictions

Another significant aspect of the Act is its regulation of broadcasting content. It establishes guidelines for the classification, advertising, and protection of children from inappropriate material. The Act requires broadcasters to adhere to codes of practice that address accuracy, fairness, privacy, and complaints handling. These provisions contribute to maintaining ethical standards and public trust in the media.

The Broadcasting Services Act 1992 has undergone amendments and updates over the years to adapt to the evolving media landscape. With the emergence of digital media platforms, the Act has been extended to encompass online content. This includes streaming services and social media. This extension ensures that the regulatory framework remains relevant and effective in the digital age.

The Act plays a pivotal role in governing broadcasting and media services in Australia. With its objectives of promoting diversity, upholding content standards, and safeguarding consumer interests, the Act provides a comprehensive regulatory framework. By ensuring compliance, fostering media plurality, and protecting community standards, the Act contributes to a vibrant, accountable, and socially responsible media environment in Australia.

Southern Cross Austereo

Southern Cross Austereo (SCA) is a prominent Australian media company that operates in the radio, television, and digital industries. Over several decades, SCA has established itself as a leading broadcaster and content provider in the country. This section provides an overview of SCA’s background, highlighting its key achievements and contributions to the Australian media landscape.


SCA traces its origins back to 1930 when it was established as a regional radio broadcaster in New South Wales, Australia. Over the years, the company expanded its reach and diversified its offerings, becoming a prominent player in the Australian media industry. Today, SCA operates more than 80 radio stations across the nation, including popular brands such as Triple M and Hit Network, which cater to a wide range of audience demographics.

Radio & Television

In addition to radio, SCA has a strong presence in the television sector. It owns and operates the regional television network Southern Cross Television in regional areas of Australia. The company’s television offerings include news, current affairs, sports, and entertainment programming, ensuring that viewers are engaged and informed.

Digital Media

SCA recognises the evolving nature of the media landscape and has embraced digital platforms to enhance its presence. The company has developed a robust digital strategy, encompassing online streaming, podcasts, social media engagement, and mobile applications. By harnessing digital technologies, SCA has expanded its reach beyond traditional broadcasting, engaging with audiences through various digital channels.

One of SCA’s notable achievements is its commitment to producing high-quality, locally focused content. The company invests in local talent, fostering the development of Australian voices and stories. This dedication to local content has entertained audiences and played a vital role in supporting Australian culture and community.


Furthermore, SCA’s success can be attributed to its innovative approach to media. The company consistently seeks new ways to engage with audiences and adapt to changing consumer behaviours. By embracing emerging technologies and platforms, SCA has positioned itself at the forefront of the media industry.

Social Responsibility

SCA’s commitment to social responsibility is another important aspect of its operations. The company actively participates in various community initiatives and charity programs, raising awareness and supporting important causes. SCA’s involvement in philanthropic endeavours underscores its dedication to making a positive impact beyond the realm of media.

Southern Cross Austereo is an influential media company in Australia. It has an extensive radio network, regional television offerings, and a strong digital presence. With a focus on local content, innovation, and community engagement, SCA continues to play a significant role in shaping the Australian media landscape. As the company evolves and adapts to the ever-changing media environment, it remains committed to providing entertaining, informative, and engaging content to audiences across the nation.

ARN Media Limited

ARN Media Limited, known as ARN, is a prominent Australian media company specialising in radio broadcasting and digital media. This section provides an overview of ARN’s background, highlighting its achievements and contributions to the Australian media landscape. 


Founded in 1930, ARN has established itself as a leading player in the Australian radio industry. The company owns and operates a network of highly popular radio stations across the nation, catering to diverse audience demographics. ARN’s radio brands include the widely recognised KIIS Network, Pure Gold Network, and The Edge. These stations offer a wide range of content, including:

  • music,
  • talk shows,
  • news, and entertainment programs.

These stations ensure a captivating listening experience for audiences nationwide.

Broadcast Content

ARN’s success can be attributed to its innovative approach and commitment to delivering high-quality programming. The company constantly seeks to push boundaries and engage with listeners through fresh and captivating content. ARN’s radio hosts and presenters are renowned for their expertise, humour, and ability to connect with audiences. The presenters make each station a go-to destination for entertainment and information.

In addition to its radio presence, ARN has embraced digital platforms to expand its reach and engage with audiences beyond traditional broadcasting. The company has developed a strong digital strategy, offering online streaming, podcasts, and interactive mobile applications. By leveraging digital technologies, ARN ensures that listeners can access their favourite stations and content anytime, anywhere.


ARN’s dedication to community involvement is another significant aspect of its operations. The company actively supports local initiatives and charities, using its platform to raise awareness and give back to the community. Through partnerships and events, ARN demonstrates its commitment to making a positive impact beyond the realm of media.

Furthermore, ARN has a proven track record of industry recognition and awards. The company’s commitment to excellence has been acknowledged through numerous accolades, including multiple Australian Commercial Radio Awards (ACRAs). These awards celebrate the best in Australian radio broadcasting, highlighting ARN’s ability to consistently deliver outstanding content and connect with audiences.

Brand Partnerships

ARN’s success is also driven by its strong partnerships with both local and international brands. The company collaborates with advertisers, helping them reach their target audiences effectively through innovative and tailored campaigns. ARN’s extensive network and deep understanding of its listeners allow for strategic brand alignments, maximising the value for advertisers and enhancing the overall listening experience.

ARN Media Limited is a leading Australian media company renowned for its radio broadcasting and digital media offerings. With a diverse portfolio of radio stations, a strong digital presence, and a commitment to community involvement, ARN continues to shape the Australian media landscape. Through innovative programming, engagement with audiences, and strategic partnerships, ARN remains at the forefront of the industry, providing quality content and entertainment to listeners across the nation.

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