Lachlan Murdoch grabs stake in Prime Media

Lachlan Murdoch, the son of media baron Rupert Murdoch, has paid $16 million for a stake in Prime Media, the regional television and radio company majority owned by billionaire Paul Ramsay.

Murdoch’s investment company Illyria will control 9.1% of Prime after participating in Prime’s $110 million capital raising.

Prime, which buys programs from Kerry Stokes’s Seven Network for its regional television network, announced its capital raising in March, just weeks after posting a first-half loss of $29 million. Prime will use the new capital to pay down debt and strengthen its balance sheet.

This is not the first time Murdoch and Ramsay have invested together. Murdoch’s company Illyria and Prime Media were both investors in digital marketing company Destra, which was placed in receivership in November 2008 with debts of more than $30 million.

In 2007, Murdoch hit the headlines after unsuccessfully attempting to take control of James Packer’s media group, Consolidated Media Holdings.

Since then, Murdoch has made a string of smaller investments. He bought stakes in toy maker Funtastic, DVD rental company Quickflix, and an online advertising company in the US called Spot Runner.

Perhaps Murdoch’s most successful investment has been an 8% stake in the Indian cricket team the Rajasthan Royals. Murdoch reportedly paid just over $US5 million for the stake, which is now worth more than $US55 million.

Related stories: 

• Lachlan Murdoch buys a slice of struggling toy company Funtastic

• Prime Media to seek offers for a carved-up Destra