And Seven is also reported to be lining up with its private equity partner Kohlberg Kravis Roberts to buy Telecom New Zealand’s directories business in a deal that could be worth $2 billion.
The Australian newspaper reported that four groups – including Seven and KKR – had been shortlisted to buy the TNZ directories business, and that each bidder was making presentations to the Telecom New Zealand’s senior management and its financial advisor Goldman Sachs.
The network took its relationship with TNZ a step closer last week with the launch of Yahoo!Xtra, the joint-venture between its Yahoo7 business – owned jointly by Yahoo and Seven – and Telecom New Zealand.
Yahoo!Xtra is 51 per cent-owned by Yahoo7. Yahoo7 chief executive Ian Smith was appointed interim CEO of the new venture. Smith said the new company aimed to bring together the global content of the Yahoo group – including Seven’s Australian resources – with “Xtra’s understanding of New Zealanders, their passions and their interests.”
“Our goal is to deliver New Zealand internet users the finest entertainment, information and communications experience available.
“With Yahoo!Xtra New Zealanders join a global community of almost half a billion people using Yahoo! in more than 20 countries.
Telecom New Zealand chief operating officer Kevin Kenrick – who is one of three TNZ representatives on the board – said Yahoo!Xtra would link the best of New Zealand to “the best the rest of the world has to offer.”
An Auckland-based chief executive is expected to be appointed to the new venture by the end of March.
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