Why Fairfax’s Share Price is Down Nearly 14% Today

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.

Discover why these five household-name stocks could be the first to lose you money when Aussie stocks drop dramatically. Free report available now.

Fairfax share price falls off a cliff

fairfax market index

Source: marketindex.com.au

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.

Regards,

Ryan Clarkson-Ledward,
For 
Markets & Money

PS: Fairfax isn’t the only stock you should be worried about. Check out Markets & Money’s Vern Gowdie’s free report where he outlines the five ASX-listed stocks posing the biggest threat to your family’s wealth. Get the names here.


Ryan Clarkson-Ledward is a junior analyst for Markets & Money. Ryan has degrees in both communication and international business. His priority is bringing you the latest price updates on stocks through ASX updates, as well as supporting Sam Volkering with background research. As part of the team at Markets & Money his aim is to provide unbiased and relevant news for readers. Ryan’s work with Sam is designed to provide research that complements Sam’s analysis for small-cap and technology stocks. Together, their objective is to break through all the jargon and give you the hard facts to inform your investment decision-making. Ryan writes for:


Leave a Reply

Your email address will not be published. Required fields are marked *

Markets & Money