The slow but sure demise by DHG compared to the rise of REA feels like a “Death by a thousand cuts” – not a great investment by Fairfax as opposed to Newscorp’s major stake in REA; both media giants own over 60% of the respective platforms. Rumours abound that cashed-up Private Equity firms are circling DHG, and this may be its best chance to reclaim some of its significant underperformance – TPG attempted to buy Domain back in 2017. New CEO Catherine West at Fairfax/Nine needs to try and turn DHG around or sell it and focus elsewhere, she’s only been at the helm a few months, but we are sure this is at the top of her agenda.
NB DHG reports this coming Friday.
- We still prefer an expensive REA compared to a cheap DHG.
MM is neutral towards DHG
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