TMN sources yesterday (8 August) confirmed Authentic Entertainment chief executive Tony McGinn had sold his branded content company to Southern Cross Austereo (SCA), amid financial troubles.
An SCA spokeswoman has since told TMN in a statement: “We are in discussions with Authentic Entertainment regarding the purchase of their assets. We will make an announcement if and when the transaction is completed.”
However, TMN has learnt from sources today that McGinn, who founded the company 32 years ago as MCM Syndication, will resign from his post as executive chairman, and will not join SCA, say sources.
This week "about five [Authentic Entertainment] employees will move over to SCA at 50 Goulburn Street", a source told TMN, "mostly to continue selling [Vevo] advertising. TM [Tony McGinn] isn’t one of them."
Sources familiar with the deal said that Authentic Entertainment’s online content delivery platform, The HUB, has already ceased its operations.
TMN also understands that some employees were made redundant following The Hub’s closure, and less than 15 staff now remain in both its Moore Park and Richmond headquarters, as management move to reduce overheads.
Authentic Entertainment, which produces syndicated national radio programs Take 40 and Planet Vevo for the Hit Network, and My Gen for ARN, also represents premium music video platform Vevo in Australia and New Zealand.
SCA is expected to dissolve the Authentic Entertainment brand, and take production and distribution of its syndicated radio programs in-house.
As reported by TMN yesterday, this could see SCA producing and selling the Jonesy and Amanda hosted My Gen show for its rival network, ARN.
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