Gina Rinehart, Australia’s richest person and one of the world’s most powerful mining magnates, recently helped finance a deal to acquire a 10 per cent stake in Southern Cross Austereo – the second largest commercial media broadcaster in Australia.

The company owns many major media brands including the Seven Network, West Australian Newspapers and Triple M.

The announcement was followed by an 8 per cent increase in share prices for the company – an uncommon feat in the media industry, which is often overlooked by speculative investors.

The deal – worth about $26 million – doesn’t give Rinehart an immediate stake in the company. But she could secure a 9 per cent share if her backed partner, former Seven network executive Bruce McWilliam, defaults on their agreement.

Billionaires and the media

This isn’t the first time Rinehart has forayed into the Australian media industry, having previously owned stakes in Channel Ten and Fairfax.

But what is it that motivates wealthy business people to invest in media companies, especially when they often offer poor returns to investors?

People who own news businesses have the potential to steer the actions of the company towards their own interests. This can include affecting how stories are framed so their political interests are prioritised. They may also set news agendas that emphasise their worldview or prevent them from being critiqued.

Famous examples include the reported decision from The Washington Post to not endorse Kamala Harris for the US presidency in 2024 after owner, billionaire Jeff Bezos, insisted it change its editorial practices........

© The New Daily