NZME directors ‘have concerns’ about businessman Jim Grenon taking editorial control

NZME’s directors have fired their own shots in the war for control of the media company, saying they have concerns about a takeover bid including the risk of businessman Jim Grenon taking editorial control.

In a statement to the NZX, the board said it was delaying its annual shareholders meeting until June and opening up nominations of other directors.

Grenon, a New Zealand resident since 2012, bought a 9.3 percent stake in NZME for just over $9 million early in March.

NZME is publisher of a number of newspapers, including The New Zealand Herald, as well as operating radio stations and property platform OneRoof.

Within days of taking the stake, Grenon had written to the company’s board proposing that most of its current directors be replaced with new ones, including himself, and said the performance of the company had been disappointing and he was wanted to improve the editorial content.

NZME has now told the stockmarket it had concerns whether Grenon’s proposals were in the best interests of the company and shareholders. — RNZ News

Dear NZME Board,

I was once a columnist for The New Zealand Herald, but I’m too left wing for your stable of acceptable opinions and now just run award-winning political podcasts instead.

Normally as board members of a financialised media company in late stage capitalism with collapsing revenue thanks to social media, you don’t generally have to consider the actual well being of our democracy.

Let me be as clear as I can to you all.

You hold in your hands the fate of Fourth Estate journalism and ultimately the democracy of New Zealand itself.

As the largest Fourth Estate platforms in the country, your obligations go well beyond just shareholder profit.

Alt-right billionaire Jim Grenon has in my view been extremely disingenuous.

The manner in which NZME has been sold as underperforming so that the promise of a quick buck from OneRoof seems the focus point is made more questionable because I suspect Grenon’s true desire here is editorial control of NZME.

His relationship with a far-right culture war hate blog that promotes anti-Māori, anti-trans, anti-vaccine, climate denial editorial copy alongside his support for culture war influencers suggest a radicalised view of the world which he intends to implement if he gains control.

Look.

NZME is right wing enough, your first editorial in The New Zealand Herald was calling for white people to start war with Māori, Mike Hosking is the epitome of right wing commentary and the less said about Heather Du Plessis Allan, the better, but all of you acknowledge that 2 + 2 = 4.

Alt-Right billionaires don’t admit that.

Alt-right billionaires tend to lean into divisive culture war rhetoric and are happy to promote 2 + 2 = whatever I say it is.

You cannot allow alt-right billionaires with radicalised culture war beliefs take over the largest media platforms in the country.

This moment demands more than dollars and cents, it requires a strong defence of independent editorial content, even when that editorial content is right wing.

The NZ Herald, Heather and Mike are without doubt right wingers, but they are right wingers who pitch their argument within the realms of the real and factual.

Alt-right billionaires do not do that.

If NZME is taken over and the editorial direction takes a hard right culture war turn, you will be dooming NZ democracy and planing us on a highway to hell.

You must, you must, you must stand against this attack on editorial independence.

Republished from The Daily Blog with permission.

Article by AsiaPacificReport.nz

The Aotearoa New Zealand union representing many of NZME’s journalists says it is “deeply worried” by a billionaire’s plans to take over its board.

Auckland-based Canadian billionaire Jim Grenon is leading a move to dump the board of media company NZME, owners of The New Zealand Herald and NewsTalk ZB.

He has told the company’s board he wants to remove most of the current directors, replace them with himself and three others, and choose one existing director to stay on.

He took a nearly 10 percent stake in the business earlier in the week.

Michael Wood, negotiation specialist at E tū, the union that represents NZME’s journalists, said he had grave concerns.

“We see a pattern that has been incredibly unhealthy in other countries, of billionaire oligarchs moving into media ownership roles to be able to promote their own particular view of the word,” he said.

“Secondly, we have a situation here where when Mr Grenon purchased holdings in NZME he was at pains to make it sound like an innocent manoeuvre with no broader agenda . . .  within a few days he is aggressively pursuing board positions.”

What unsaid agendas?
Wood said Grenon had a track record of trying to influence media discourse in New Zealand.

“We are deeply concerned about this, about what unsaid agendas lie behind a billionaire oligarch trying to take ownership of one of our biggest media companies.”

“We are deeply concerned about this, about what unsaid agendas lie behind a billionaire oligarch trying to take ownership of one of our biggest media companies.”

He said it would be important for New Zealand not to follow the example of the US, where media outlets had become “the mouthpiece for the rich and powerful”.

E tū would consult its national delegate committee of journalists, he said.

Grenon has been linked with alternative news sites, including The Centrist, serving as the company’s director up to August 2023.

The Centrist claims to present under-served perspectives and reason-based analysis, “even if it might be too hot for the mainstream media to handle”.

Grenon has been approached for comment by RNZ.

Preoccupations with trans rights, treaty issues
Duncan Greive, founder of The Spinoff and media commentator, said he was a reader of Grenon’s site The Centrist.

“The main thing we know about him is that publication,” Greive said.

“It’s largely news aggregation but it has very specific preoccupations around trans rights, treaty issues and particularly vaccine injury and efficacy.

“A lot of the time it’s aggregating from mainstream news sites but there’s a definite feel that things are under-covered or under-emphasised at mainstream news organisations.

“If he is looking to gain greater control and exert influence on the publishing and editorial aspects of the business, you’ve got to think there is a belief that those things are under-covered and the editorial direction of The Herald isn’t what he would like it to be.”

Greive said the move could be connected to the NZME announcement in its annual results that it was exploring options for the sale of its real estate platform OneRoof.

“There are a lot of investors who believe OneRoof is being held back by proximity to the ‘legacy media’ assets of NZME and if it could be pulled out of there the two businesses would be more valuable separate than together.

“If you look at the shareholder book of NZME, you don’t image a lot of these institutional investors who hold the bulk of the shares are going to be as excited about editorial direction and issues as Grenon would be . . .  but they would be excited about the sale of OneRoof.”

Wanting the publishing side
Greive said he could imagine a scenario where Grenon told shareholders he wanted the publishing side, at a reduced value, and the OneRoof business could be separated off.

“From a pure value realisation, maximisation of shareholder value point of view, that makes sense to me.”

Greive said attention would now go on the 37 percent of shareholders whom Grenon said had been consulted in confidence about his plans.

“It will become clear pretty quickly and they will be under pressure to say why they are involved in this and it will become clear pretty quickly whether my theory is correct.”

This article is republished under a community partnership agreement with RNZ.

Article by AsiaPacificReport.nz