The Nine Entertainment (ASX: NEC) share price rocketed to a new 52-week following news of board member Patrick Allaway’s resignation.
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Nine Entertainment Co Holdings Ltd (ASX: NEC) shares are on the rise today after the company announced some changes to its board. During intraday trade, the Nine share price surged more than 6% to reach a new 52-week high of $3.13.
At the time of writing, the media company’s shares have retreated back to $3.06, up 4.08% for the day with only moments of trade remaining.
What’s driving the Nine share price?
The Nine share price is leaping higher today following the company’s announcement that board member Patrick Allaway has resigned. In a statement released to the ASX after close of trade yesterday, Nine Entertainment chair and former federal government treasurer Peter Costello announced Mr Allaway would resign by early April.
Mr Allaway commented on his upcoming departure, stating:
My time with Fairfax and now on the Nine board has seen much growth and change for our business and I have valued the work we have done together as a Board and with management to create Australia’s largest locally owned media company. It was always my intention to stay on the Board through the merger [with Fairfax] and to see the success we have created is gratifying.
With more intense duties now as Chairman of Bank of Queensland I have taken this opportunity to step down and allow for orderly renewal on the Nine board.
According to an article published yesterday by the Sydney Morning Herald (SMH), tensions have flared in the Nine boardroom between the three Fairfax and three Nine Entertainment members. Mickie Rosen, another board member with ties to the defunct Fairfax, is also considering his future at the company, according to SMH.
The third Fairfax board member, Nick Falloon, is currently under investigation for the alleged misuse of a corporate golf club membership.
CEO Hugh Marks also resigned in November last year. His resignation came following the revelation he was in a relationship with the former managing director of commercial, Alexi Baker.
Other recent news
In other recent news, the media conglomerate penned a $30 million deal with Google owner Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) and is expected to sign a similar deal soon with Facebook Inc (NASDAQ: FB).
Furthermore, Channel Nine show Married at First Sight is currently the highest-rated program on Australian TV. On top of this, a Nielsen report from January, as reported by Mediaweek, listed nine.com.au, the Sydney Morning Herald, and The Age as the number 2, 5, and 8 most viewed news websites in Australia, respectively.
Nine share price snapshot
As stated, the Nine share price hit its highest point in 12 months during intraday trading today. Over the same period, the company has seen a phenomenal rise in its value. On 23 March 2020, Nine Entertainment shares were trading at 84 cents each. As such, today’s high watermark represents a 273% increase from the company’s 2020 bear market low.
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