Shares in Fairfax Media and Network Ten surged today following a report the two have had initial discussions on a merger.
The Australian newspaper reported that such a merger would create a group with revenues of $2.5 billion.
A Fairfax spokesman said the media industry was a dynamic one and that no one meeting had more status than any other one.
The Australian said Fairfax CEO Greg Hywood met with Ten’s Hamish Mclenannan.
Mining Magnate Gina Rinehart, a major shareholder in Fairfax, has a 10% stake in Ten and intends to keep it despite plans to step down from the network’s board.
Fairfax shares were up 2.56% to $0.80 and Ten as up 3.41% to $0.212.
(Disclosure: Fairfax Media owns 100% of Allure Media, the publisher of Business Insider Australia.)