‘A wake for those staying’: Fears for NZ journalism as billionaire buys up

‘A wake for those staying’: Fears for NZ journalism as billionaire buys up

  • 16.03.2025 23:09
  • crikey.com.au
  • Keywords: Billionaire Media Ownership

A Canadian billionaire purchased a significant stake in NZME, New Zealand's largest news publisher, sparking concerns among journalists and politicians about potential editorial control and media influence. Critics worry his background in right-wing media and political spending could steer the outlet toward biased reporting, threatening press independence.

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Estimated market influence

NZME

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Analyst rating: N/A

Owns major news publisher in New Zealand and operates radio stations and property platform OneRoof.

The Centrist

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Analyst rating: N/A

Online news website founded by Jim Grenon that criticizes traditional media, including the NZ Herald, for lacking balance on issues like climate science and COVID response. It has supported an alt-right influencer in defamation cases against the NZ Herald.

NZ News Essentials (NZNE)

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Analyst rating: N/A

Sister site of The Centrist that competes with NZME, named similarly to create confusion or competition.

Context

Analysis of Business Insights and Market Implications

Ownership and Investment Details

  • Jim Grenon, a Canadian billionaire based in Auckland since 2012, purchased a 9.3% stake in NZME for NZ$9 million.
  • Grenon is known for his investments in oil and gas, financial services, manufacturing, and real estate, with no prior media industry experience.

Competitive Dynamics

  • The Centrist, an online news platform founded by Grenon in 2023, criticized traditional media outlets like the NZ Herald for lacking balance on issues such as climate science and COVID response.
  • The platform was later handed over to fellow Canadian Tameem Barakat but continued to support controversial figures like Chantelle Baker, an alt-right influencer banned from Facebook for spreading false information.

Market Implications

  • Potential Board Takeover: Grenon aims to replace most of NZME’s current board members with his own, raising concerns about editorial control and media independence.
  • Editorial Shift: Grenon claims his goal is to improve journalism by emphasizing factual accuracy and reducing opinion-driven content. He also seeks to appeal to a broader political spectrum.
  • Investment Strategy: This move aligns with Grenon’s history of leveraging financial resources to influence industries, including media.

Regulatory and Political Scrutiny

  • Political Spending: During the 2023 election, Grenon was registered as a “promoter,” spending over NZ$15,700 on election advertising.
  • Union and Political Backlash: The NZME union and shadow minister Willie Jackson raised concerns about foreign ownership of media and its impact on editorial independence.

Long-Term Effects

  • Media Landscape Shift: If successful, Grenon’s takeover could redefine New Zealand’s media landscape by introducing new management and potentially altering content strategies.
  • Trust in Media: The controversy highlights growing public concern over the trustworthiness of news sources, with Jackson noting significant social media engagement on this issue.

Strategic Considerations

  • Market Positioning: NZME faces competition from digital platforms like OneRoof (property) and its own online ventures. Grenon’s proposed changes aim to enhance quality and relevance.
  • Public Perception: The acquisition has sparked debates about foreign influence in local media, with critics questioning the implications for journalistic integrity.

Conclusion

Grenon’s move signals a potential shift in New Zealand’s media sector, raising questions about editorial independence, competition, and the role of foreign investment. The outcome will depend on stakeholder reactions, regulatory scrutiny, and the success of Grenon’s proposed changes in revitalizing NZME.