Two Australian TV networks have been looking at taking a stake in MediaWorks assets and are said to be considering a heavily discounted price, according to industry sources.
Nine Network has joined Seven West Media in assessing the New Zealand company, whose CEO Mark Weldon this week announced integration of its TV radio and interactive arms.
Weldon is a former chief executive of the NZX was appointed in August this year have been selected for his close links and understanding with the capital markets to assist a sale.
Seven's interest has been rumoured for weeks and is tipped to be alongside an Initial Public Offering.
More recently Nine Entertainment, has also been considering an investment, a well placed source said.
Seven and Nine are arch rivals in the Australian TV market and both have programming links to MediaWorks.
It is expected that that both companies are seeking a heavy discount on the estimated $300 million valuation of the company.
A MediaWorks spokesperson said the company declined to comment on speculation.
MediaWorks owns TV3, Four and controls half the country's commercial radio market including stations like The Rock, The Edge, More FM and other networks.
Last week Morgan Stanley sold its 6.5 per cent stake in MediaWorks to Cayman Islands-based Minot Light APAC, a company linked to Bain Capital, suggesting there might be some speculative investment opportunities.
In November last year the company emerged from receivership with former debt holders taking a big hit and taking debt for equity vastly improving its profitability, but like other media companies it faces complex structural issues and has yet to prove it is prepared for the complex road ahead.
MediaWorks radio rival NZME. - the NZ spin-off APN News and Media - had been expected to move toward a float this year but is said to be still considering its options.
Both are actively integrating their operations into multi-media platforms.
TVNZ has also spent large sums integrating its digital arm in with its television arm.