8 Jun 2011

Fairfax reviewing Trade Me

9:01 am on 8 June 2011

Media organisation Fairfax has confirmed a review of its online sales business Trade Me is underway.

Australian media have suggested the auction website will be sold.

The trans-Tasman media company has already announced the sale of some radio stations in Australia.

Fairfax general manager for investor relations Frank Sufferini is saying only that Trade Me is being reviewed alongside other parts of the firm's business.

Mr Sufferini won't say what issues the review is looking at but did not dispute a suggestion that sale, retention or reorganisation of Trade Me are all options.

Some 2.7 million people are registered to trade on the site, which employs 190 staff.

Analysts have put the current value of Trade Me at $1 billion - $1.5 billion.

An Australian media analyst says there is a 50% chance the trans-Tasman media company, Fairfax, could sell the online auction business.

Roger Colman of Sydney stockbroking firm CCZ Statton Equities told Morning Report the outlook for media profits in Australia are poor and Fairfax needs to repay debt faster, which may force it to sell Trade Me.