The Nine (ASX:NEC) share price is up on deals with Google and Facebook

Nine has signed deals with Facebook and Google following the Australian Government’s News Media Bargaining
The post The Nine (ASX:NEC) share price is up on deals with Google and Facebook appeared first on The Motley Fool Australia. –

Shares in Nine Entertainment Co Holdings Ltd (ASX: NEC) are gaining today after the company announced it has officially signed agreements with Facebook Inc (NASDAQ: FB) and Alphabet Inc‘s Google (NASDAQ: GOOGL) (NASDAQ: GOOG) following Australia’s News Media Bargaining Code.

At the time of writing, the Nine share price is $3.03, 2% higher than yesterday’s close.

The media company owns news outlets including 9 television, The Age, The Sydney Morning Herald, and the Australian Financial Review.

Nine’s deal is the result of a battle over the Australian Government’s proposed media code earlier this year that saw Facebook remove all Australian news from its platform.

Days after the stand-off between Facebook and Australian news media, the News Media Bargaining Code passed through Parliament. The code encourages news media companies to undertake commercial agreements outside of the code.

News Corporation (ASX: NWS) and Seven West Media Ltd (ASX: SWM) have already signed agreements with Google and Facebook.

Let’s take a look at the agreements driving the Nine Entertainment share price today.

Nine’s new deals

Nine Entertainment announced this morning that the media company has officially signed agreements with Facebook and Google.

While Nine hasn’t announced what it will be charging the tech giants, it expects revenue from the deals will boost its news media assets considerably.

According to Nine’s release, it expects its publishing division’s earnings before interest, tax, depreciation, and amortisation (EBITDA) to grow by $30 million to $40 million as a result of its deals with Facebook and Google.

Nine states the growth will be due to the fees charged to Facebook and Google, the end of an earlier agreement on Google’s advertising sales revenue, and increased customer subscriptions.

According to anonymous sources quoted by The Age, Nine is charging Google around $45 million annually to use its news content. That’s about double what it’s said to be charging Facebook.

The deal between Nine and Facebook will see Nine’s news video clips and articles posted on the social media platform. It has a minimum amount payable and a 3-year term.

Through Nine’s agreement with Google, Nine will supply news content for Google’s News Showcase and the platform’s other news products. Google will also expand its marketing on Nine’s platforms. Google will not be sharing videos from Nine’s media brands.

Nine stated the costs to Google will involve a fixed annual fee with modest growth in its early years. Nine’s deal with Google will cover a 5-year period.

Nine Entertainment share price snapshot

The Nine Entertainment share price has been performing well on the ASX lately.

Currently, it’s 30% higher than it was at the start of 2021. It’s also gained 102% since this time last year.

The media company has a market capitalisation of around $5 billion, with approximately 1.7 billion shares outstanding.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

News Corp (ASX:NWS) share price slides amid FOX Bet rumours
Leading brokers reveal 2 ASX shares to buy right now

Why the Nuix (ASX:NXL) share price tumbled 5% today
This tech ETF has returned 30% for ASX investors in the past year

Are the FAANG stocks still good buys today?

The post The Nine (ASX:NEC) share price is up on deals with Google and Facebook appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!