Nine Entertainment Co has appointed Mike Sneesby, a former telecommunications executive and the head of streaming service Stan, as its new boss in an appointment that underlines the media company’s focus on its core free-to-air and streaming television businesses.
The $5.2 billion diversified media company announced this morning the 46-year-old would take the helm after an extensive search for longstanding chief executive Hugh Marks’ replacement. Mr Sneesby beat several internal and external candidates for the role including Nine’s chief digital and publishing officer Chris Janz and former Endemol Shine boss Carl Fennessy.
Mike Sneesby has been named the new chief executive of Nine Entertainment Co. Credit:James Brickwood
Nine is the owner of The Sydney Morning Herald and The Age, but also owns Stan and television, radio and other publishing assets. Nine also has a 60 per cent stake in real-estate listings portal Domain. The company has been searching for a new chief executive since Mr Marks abruptly resigned in November because of his relationship with a former member of his executive team, Alexi Baker.
Mr Marks led Nine for more than five years and was the first chief executive to run the diversified media company since the 2018 $4 billion merger with Fairfax Media.
Mr Sneesby, who has an electrical engineering degree, was brought in to launch Stan by former Nine chief executive David Gyngell. He joined Stan from ecommerce joint venture, Cudo, which was owned by Microsoft and Nine, but was also the vice-president of IPTV in Dubai, led corporate strategy and business development at ninemsn (now nine.com.au) and was a general manager at Optus. Mr Sneesby has extensive experience in leading a subscription service, but does not have a background in free-to-air television, radio or publishing. He is married with children.
“I am honored to be entrusted with this important role, to be the custodian for many of Australia’s most important, valuable and iconic media brands,” he said in a statement. “I have worked alongside my colleagues at Nine for many years and I look forwarding to building our future together as we embrace the opportunities presented in the emerging and growing digital future. The Nine family is made up of journalists, technicians, producers and so many dedicated to their craft, it will be the honor of a lifetime to lead them.”
Stan, which was jointly owned by Fairfax and Nine until the merger, now has more than 2 million subscribers. The achievement was met through securing large content deals with US companies such as ViacomCBS, Disney and NBC Universal. Mr Sneesby was also behind the launch of Stan Sport, a new division which is responsible for airing sports such as the rugby union and tennis tournament Wimbledon. Investors value Stan at more than $1 billion.
At the company’s fiscal half year results last Wednesday, Stan reported a 28 per cent increase in revenue to $149.1 million for the half and earnings before interest, tax, depreciation and amortisation of $36.5 million (up $14 million). It is unclear who will replace Mr Sneesby at Stan.
Industry sources familiar with the appointment process said weight was given to the candidates’ television experience.
One of the key challenges for Mr Sneesby will be the retention of Mr Marks’ key executive team which includes Mr Janz and director of television Michael Healy. Chief sales officer Michael Stephenson and managing director of local markets and group marketing Lizzie Young are also in the executive team and were in the running for chief executive early in the search.
The appointment of a new chief executive has occurred in the middle of a tumultuous week for Nine, which is investigating deputy chairman Nick Falloon over alleged misuse of company funds. Nine director Patrick Allaway, who joined the board from Fairfax Media during the merger, tendered his resignation on Monday. A third Nine board director with ties to Fairfax, Los Angeles executive Mickie Rosen, has also indicated to multiple sources she is considering resigning. The exit of Mr Allaway and investigation into Mr Falloon have weakened the influence of former Fairfax directors on the board.
Tensions on the board have erupted despite a historic half year performance for the media company, with net profit up 79 per cent to $181.9 million.
Nine shares closed at $3.07 on Tuesday, up 4.4 per cent — the company’s highest point since it was listed on the ASX in 2013. When Mr Marks was appointed in November 2015, shares were trading at $1.54 each.