Shares of Domain Holdings Australia Ltd [ASX:DHG] have spiked in value this week after the announcement of a merger between Fairfax and media giant Nine Entertainment Co. Holdings Limited [ASX:NEC].
On Thursday 26 July, the day after the Proposed Transaction, Domain shares were trading at $3.35, up 9.12% since the Wednesday’s close at $3.07.
Today Domain’s share price is steady trading up 3.34%.
Why the Nine–Fairfax merger affected Domain
Domain’s rising share price may have something to do with the recent Fairfax–Nine merger. The move is set to unlock significant growth potential by combining content, brands and audience reach and data across Nine’s respective businesses, including — you guessed it — Domain. Granted this is only a recent development. Negative effects of the merger might become more apparent, and hit Domain’s share price in weeks to come.
Investors may have also been impressed by the appointment of Domain’s new CEO, Jason Pellegrino, as another potential cause of the spike in the company’s share price.
Mr. Pellegrino joins Domain from Google, where he was managing director Australia and New Zealand since May 2016, as well as being a member of the Asia-Pacific regional leadership team.
What’s in store for Domain?
Investors can look forward to the same inspiring and driven performance that Jason Pellegrino has shown at Google. With Chairman Nick Falloon saying on behalf of the Domain board that:
‘Jason’s career as a digital executive with deep experience is sales, strategy, operations and product and technology speaks for itself…[And] will greatly assist him to take domain, and it many talented people, into an exciting next stage of growth.’
Jason also commented on his position:
‘I am delighted to be joining the incredibly talented team at Domain and I can’t wait to be part of the exciting growth journey ahead.’
For Money Morning
PS: Are you investing in the right stocks? Top Aussie stock picker Sam Volkering has revealed four Aussie stocks he believes could be the top performers this year. Claim your free ‘The Four Best ASX Stocks for 2018’ report here.