Shares in Nine Entertainment soared today after a mystery buyer grabbed a 3.4% stake for about $50 million.
A short time ago, the shares were up more than 5% to $1.58.
Nine Entertainment would be a target or a player in changes to media ownership laws announced by the federal government.
Communications minister Mitch Fifield has announced what he calls the most significant media reform in Australian media in a generation.
This involves getting rid of rules preventing mergers between regional television networks and metropolitan affiliates, and the two-out-of-three regulation stopping anyone from owning a newspaper, radio station and a television network in the same major market.
A wave of mergers and takeovers in the media is expected when new rules take effect.
Fairfax Media, which has a tie up with its $100 million Stan streaming media joint venture with Nine, has been reported to be a possible buyer.
However, “Fairfax Media is not interested in buying a stake of any size,” a spokesman says.
(Disclosure: Allure Media, the publisher of Business Insider, is 100% owned by Fairfax Media.)