Seven and REA talk partnerships ahead of Nine-Fairfax merger

Digital real estate classifieds giant REA is looking at new platforms to drive growth. Rob Homer

by Max Mason Seven West Media and News Corporation-backed REA Group have held exploratory talks about how the free-to-air broadcaster can help the digital real estate classified business ahead of Nine Entertainment's merger with Fairfax Media, which owns a majority stake in Domain.

Sources said Seven and ASX-listed REA, which is 61 per cent owned by News Corp, have held talks about how the digital real estate classifieds giant can drive growth via the former's various platforms, including free-to-air television, digital publishing and West Australian Newspapers without the need for a merger or acquisition.

In October, The Australian Financial Review revealed Seven and News Corp were canvassing a range of marketing and co-production initiatives without the a corporate transaction.

Seven has since partnered with News Corp on a new car marketing platform, Navigate Auto, and chief executive Tim Worner flagged further commercial deals with "fremenies", not just News Corp.

It comes as Nine prepares for its merger with Fairfax Media. Fairfax owns 60 per cent of REA's main rival Domain and the business is seen as one of the crown jewels of the deal.

"The combined group is expected to support the further growth of Domain, including through promotional and content integration capabilities of Nine's FTA TV network," Fairfax outlined in its scheme document to shareholders as one reason to vote in favour of the merger.

Sources said Seven and REA are exploring similar capabilities without the need for a corporate transaction.

"The nature of media now is that most players are likely to collaborate in some areas while competing in others," a Seven spokesman said.

"We've made it very clear that we are open to collaboration and partnerships to create benefits for our business and our advertising partners. Like any brand that is looking to market themselves, we will work with REA if it makes sense for them and for us. We also work closely with Domain, a sponsor of our Cricket Test Series. We all talk all the time, but we have no announcements planned at the moment."

The spokesman pointed out Seven and Nine are owners of the newly created NPC Media, which provides a playout hub and consolidating infrastructure and the network has worked with Foxtel for many years on AFL coverage.

REA declined to comment.

"For Seven to partner with other organisations, other frenemies, to go to market with a more compelling offer is going to happen," Mr Worner said at the company's upfronts in October.

"I think that's the nature of traditional media in 2018 and, as we close out this decade, I think we're going to see more of those commercial tie-ups, it just makes sense."