What happened to the Fairfax Media share price?
After closing four cents higher on Friday, Fairfax Media [ASX:FXJ] lost 8.9% today, to close at 87.50 cents.
Why did Fairfax media shares price fall?
The fall comes after Gina Rinehart announced on Friday night that she was selling her entire stake in the company. The billionaire today offloaded 14.66% of the company’s shares at 86.75 cents per share.
Rinehart acquired her stake in the media company from 2010 through 2012, when she became the company’s largest shareholder and demanded a place on the company’s Board.
A spokesman for Ms Rinehart’s company, Hancock Prospecting, said the iron ore magnate may consider buying back into the media company in the future under new leadership.
John Klepec, the chief development officer of Rinehart’s company, Hancock Prospecting, said ‘We have come to the conclusion that the senior leadership of Fairfax Media has no workable plan to revitalise the company and address the declining business and circulation numbers.’ But he said the billionaire may buy back into Fairfax if there was a change in its leadership.
What now for Fairfax Media Ltd?
Also today, US news website The Huffington Press signed a deal with Fairfax Media to launch an Australian edition.
Fairfax is due to report its half yearly results on February 19.
for The Daily Reckoning Australia