Mediaworks pays back "loan" 2 years early

You might remember last year when it was revealed that the government had given Mediaworks a deferred payment scheme for $43.3m worth of broadcasting licences.

There was much gnashing of teeth as rival media piled on, declaring that it was actually a loan and favouritism by former RadioWorks owner and then Communications Minister Steven Joyce.

Mediaworks have now announced that they have paid for the licence fees, almost two years early.

MediaWorks’ subsidiary RadioWorks has repaid the $32.28 million outstanding on a “loan” signed off by former Communications Minister Steven Joyce that allowed the media group to defer payments to the Crown for radio spectrum licences.

The balance of $32.28m of principal plus interest was paid on Wednesday – almost two years ahead of schedule, current minister Amy Adams said in a statement.

That payment was on top of two earlier payments of $11.9m which would suggest the taxpayer has netted an additional $12.78m in interest for some simple flexibility.

About the author

Regan is one of the co-founders of Throng Media.
If they're on, I'm usually watching Game of Thrones, The Killing, 24, Battlestar Galactica, The X Factor, Survivor, Go Girls, and the NRL.
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  • Gary Wills

    Ironbridge should sell MediaWorks to Britian’s Channel 4. As both companies have a similar business model. A lot of Channel 4′s programming is screened in New Zealand.

  • Reece

    I would argue TVNZ is more similar to Channel 4 than TV3/mediaworks. The key difference is that channel 4 doesnt have to return a profit to the government. However the rather small profit margin from TVNZ vs the NZ on Air funding it gets balances that out.

    Channel 4 (with its not for profit status) probably isnt in the position to or have the directive to purchase forigen media companies.

  • Gary Wills

    Hope Channel 4 dose not get swallowed up by the BBC.