MediaWorks has announced its intention to merge with Australian-owned outdoor advertising company QMS in New Zealand.
MediaWorks - which owns radio, TV and digital assets including the Newshub website - will take a controlling interest in the merged entity according to the terms of a cooperation agreement between the two companies.
It is understood the agreement is conditional and that the deal could still falter, but that both parties are confident.
"Merging with QMS NZ is a great opportunity for MediaWorks, it would bring together the strengths of radio and out of home to expand the influence for advertisers at all points of the consumer journey," said MediaWorks CEO Michael Anderson.
"It would also neatly support our advertisers' video strategy on TV with access to classic and digital screens."
If the deal goes ahead the merged entity, which will retain the MediaWorks name, it will be the biggest media company in New Zealand in terms of overall audience and advertiser reach.
It will also be the only New Zealand media company selling advertising on TV, radio, digital and outdoor.
"It's fair to say that growing MediaWorks with a potential deal like this has taken longer than what we would have liked," said Mr Anderson.
"However, the journey of improved performance over the past few years has been critical in enabling us to be in a position to take this step.
"Our Board and our management believe this is right for MediaWorks and I am proud of where we have got to and the exciting opportunities it could bring."
QMS is listed on the Australian Stock Exchange. The New Zealand business, which has invested heavily in digital billboards, has operated as a wholly owned subsidiary until now.
Announcing the agreement, Mr Anderson said that from a governance point of view, the deal was straightforward. He would remain CEO of the company.