At time of writing, Fairfax Media Limited [ASX:FXJ] is down just over 13.5%, currently trading at 67 cents per share.
The stock has recently been on an upward trend since July after it was announced that it would merge with Nine Entertainment Co. Holdings Limited [ASX:NEC] to form a media conglomerate.
However, today saw the stock plummet after a negative revenue update.
The stock had been steady over the last month before falling off a cliff today.
Fairfax share price falls off a cliff
The update noted that group’s revenue is down 5% compared to the previous year.
Nine Entertainment is also down 13.8% as its future is tied to Fairfax’s.
The proposed media conglomerate’s future is not secured yet however, with Fairfax shareholders required to vote on the merger.
Competition regulators also have to approve the deal.
Under the proposed deal, Fairfax shareholders receive .3627 Nine shares and .025 cash while Nine shareholders will own 51.1% of the combined company.
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