Fairfax Group Buys NZ’s Online Auction Site For $466 Million

Australia’s John Fairfax Holdings, one of the biggest media cpmpanies there, will buy New Zealand online auction business Trade Me for 700 million New Zealand dollars ($466 million) in cash, with another $33 million based on future performace. Trade Me, the most visited Website in New Zealand, has 1.2 million members who are expected to post 35 million auctions in 2006.

There have been persistent rumors that it was the target of takeover talks from foreign operators, including U.S. Internet auction site eBay.

TheAge: The acquisition is on the back of a 66.6 per cent increase in revenue for Fairfax Digital to AUS $42.6 million. Fairfax Digital posted EBIDTA of $12 million, up $1.2 million from last year.

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