CCZ Statton Equities founder bows out
Known among media chief executives and chief financial officers as an eccentric, upbeat, but also hard-questioning analyst, Mr Colman worked in the industry through some of its biggest changes.
They included the collapse of Fairfax Media in 1990, Alan Bond’s eye-watering $1.05 billion purchase of the Nine Network in 1987 and subsequent sale back to Kerry Packer for $250 million three years later, to more recent sweeping changes such as Network 10’s fall into receivership and purchase by US studio giant CBS in 2017, and the $4 billion merger of Nine and Fairfax in 2018.
Mr Colman started his career at the State Authorities Superannuation Board of NSW in 1974, moving on to Jones Grice & Co, BT Securities and ANZ Securities before founding CCZ in 1999.
“The run in Fairfax Media in ’87 [by Warwick Fairfax Junior] … peaking at $8.50 was the absolute sign of absurdity,” Mr Colman said.
In the early 1990s, Mr Colman said he focused on buying media stocks based on capturing an increasing percentage of gross domestic product as the Australian economy shifted towards tertiary industries.
“If we were to not have beneficial growth rates in the media sector, before globalisation enabled the penetration of Australia, it would’ve meant reverting back to the Stone Age when copper was 60 per cent of GDP. It was a winner to be in the media stocks,” he said.
At the time, before the nationalising of free-to-air broadcasters, there were countless television businesses scattered around the country running monopolies with huge margins. When the industry began to consolidate, Mr Colman began buying broadcasters who were the likely target of companies.
Mr Colman has often been a part of it himself, having advised on transactions, fund raising across a number of media businesses, as well as being an owner and director in regional radio and newspaper businesses in Australia and New Zealand. He was a part-owner of CarAdvice.com.au which is now owned by Nine, and launched Drive TV on Network 10 in 2005.
The media landscape Mr Colman leaves behind has been drastically changed, not only via consolidation, but with the internet bringing in major global players, including Facebook and Google. They have swept up advertising dollars and attention.
Mr Colman believes Australian media faces a difficult road ahead, although he is confident about the merger of Nine and Fairfax Media, which was completed last year. Nine now owns The Australian Financial Review.
“Macquarie Radio stuff is instantly transferable to the television – one reporter out there with video and a microphone instead of a 2GB one and Nine in your face,” Mr Colman said. Nine took a majority stake in Macquarie after the merger and is expected to take out the remaining shareholders in the future. “The synergies are critical.”
He believes Nine will ultimately make a move for an outdoor advertising company and round out its product mix for marketers.