Through the looking glass of ACP
Given the nature of our major assignment (web celebrity) and its focus on large scale advertising, I’d chosen to examine ACP (Australian Consolidated Press) as an adjunctive research project that feeds directly into our own project. Prior knowledge of the company led me to understand that ACP is owned by PBL Media, which was largely a Packer family empire. Further investigation shows that PBL is actually co-owned by two companies, CVC Capital Partners (with a 99% share) and Consolidated Media Holdings (with a 1% share). Further research and personal communication with Wilson (2009) shows that the Packer family is largely exiting the media industry to focus on the gaming industry with CMH being a Packer business. Little is known about CVC Capital Partners, therefore for the purposes of this research I will focus on CVC as the parent company of ACP.
CVC is a large-scale investment company focusing on investments in companies with 250 million- 10 billion euros worth of enterprise value, among a number of other attributes (CVC Capital Partners). The first offices were opened in the UK and Europe in 1981 and by 1993 CVC was wholly owned by its partners. It now has 19 offices across Europe, the UK and Asia, including an office in Australia. CVC count PBL as one of its biggest companies in Asia. Essentially CVC are offering investment services and portfolio management advice. The diagram showing how the company works from the inner-core is very interesting and leads to more points to be discussed regarding influence over investments. On the CVC website it states that there are 31 managing partners and it would appear that the company is English owned, with Corporate Headquarters being in London.
On a domestic front, in 2002 Adrian MacKenzie was appointed managing director of CVC Holdings Australia (PBL Media, 2009). In an interview MacKenzie states that he has no interest in power or influence, his major concern is with profit margins and success (Murray, 2007). With MacKenzie being based in Scotland prior to his Australian placement, he is unlikely to have well-developed ties to political influence within Australia, meaning he would have relatively few people to answer to (apart from within the company). He is also very young, and at 36 may inject new life into the company. Already several PBL heavyweights have left the company and MacKenzie has made it clear that he has no interest in the day-to-day running of PBL, unlike previous proprietor Kerry Packer. The companies’ strengths are based on MacKenzie’s detachment from PBL; however in 2008, amid speculated financial problems, MacKenzie was replaced as chairman but kept on the Managing Board of Directors (Steffens, 2008). A broader examination of this could be seen as a reaction to the GFC and the enormous debt accumulated by PBL due to the Packer’s management. The $4.2 billion (Verrender, 2008) debt left by the Packer management, threat of competitive Australian media and changes in the Australian media landscape all serve as threats to CVC Holdings.
References
CVC Capital Partners, 2009. CVC Capital Partners, http://www.cvc.com/Content/EN/OurApproach/OurApproach.aspx, accessed 22/10/09
Murray, L, 2007. ‘Channel Nine’s Reluctant Frontman’, Sydney Morning Herald, http://www.smh.com.au/news/business/snapped-channel-nines-reluctant-new-frontman/2007/06/06/1181089150821.html?s_cid=rss_smh, accessed 22/10/09
PBL Media, 2009. ‘Board of Directors’, PBL Media, http://www.pblmedia.com.au/Board_of_Directors.htm, accessed 22/10/09
Steffens, M, 2008. ‘Debt Test for New PBL Chairman’, http://www.smh.com.au/business/debt-test-for-new-pbl-chairman-20080923-4mk9.htm, accessed 22/10/09
Verrender, I, 2008. ‘Amid the Bloodbath, Warren Caught a Startled Rabbit’, Sydney Morning Herald, http://www.businessday.com.au/business/amid-the-bloodbath-warren-catches-a-startled-rabbit-20080924-4nep.html, accessed 22/10/09
