NZME Signs Letter of Intent with Google and Updates Outlook

NZME Limited (NZX: NZM, ASX: NZM) has signed a letter of intent with Google, setting out the key terms for the proposed supply of news content for Google’s News Showcase and other news products and projects.

NZME and Google will now enter a period of negotiation of up to 90 days with a view to finalising a five-year agreement.

NZME expects that if the final agreements are reached, its EBITDA for the 2022 financial year will be in the range of $67-$72 million.

NZME also announced that it is in commercial discussions with Meta regarding digital transformation projects over the next year.

A further announcement will be made in relation to the outcome of the negotiations with Google and the commercial discussions with Meta.

NZME has notified the News Publishers’ Association of New Zealand Inc.

and the New Zealand Commerce Commission that it will not be participating in any collective bargaining with Google unless the parties fail to execute binding agreements on the terms set out in the Google Letter of Intent.

NZME expects to provide an update on the commencement of the on-market share buyback next week.