Publisher Fairfax Media and Nine Entertainment announced plans for a  merger creating an integrated Australian media giant across television, online video streaming, print, and digital. Under the deal, Nine will effectively be the dominant partner, with its shareholders owning 51.1 percent of the combined entity and Fairfax shareholders owning the rest. The new company will include Nine’s free-to-air television network, Fairfax’s radio interests and mastheads — including The Sydney Morning Herald and The Age in - Melbourne and a suite of digital assets. It will be called Nine, with Fairfax ceasing to exist, drawing the curtain on a venerable brand that has been an Australian staple for more than 170 years.

It is the first deal under a controversial new media ownership law passed in Australia last September which removed restrictions in place to protect diversity-that prevented companies from owning newspapers, radio and television stations in the same city. Major players in the market had long pressed for change, arguing the rules were outdated and did not account for digital media platforms and new publishers like Google and Facebook and video streaming giants such as Netflix.

Like its international peers, Fairfax has had its profits squeezed as advertising and circulation slump in the digital age, and it has been slashing staff and costs in recent years. Its board unanimously recommended the proposal, which is expected to deliver significant savings for both companies. Fairfax Chairman Nick Falloon said that the Fairfax board has carefully considered the proposed transaction and believes it represents compelling value for Fairfax shareholders. A merger “unlocks the potential for significant value creation by combining the content, brands, audience reach, and data across the respective businesses,” both companies said in a statement. “Both Nine and Fairfax have played an important role in shaping the Australian media landscape over many years,” said Nine chairman Peter Costello. “The combination of our businesses and our people best positions us to deliver new opportunities and innovations for our shareholders, staff, and all Australians in the years ahead.”

Michael McCarthy, the chief strategist at CMC Markets, said it was more like a takeover than a merger. He said that although the parties are terming it a ‘merger’, the terms could be interpreted as a takeover given the premium Nine will pay for control of Fairfax. The deal is expected to be completed before the end of the year, subject to approvals, with current Nine chief Hugh Marks heading up the company with three Fairfax directors joining the board.