Why ARN Media Divested Its Creative Agency for $1
ARN Media sells 51% stake in creative agency Emotive to founders for A$1, signaling strategic shift to audio-only focus. Agency reports strong recovery post-independence despite losing Optus account.
Emotive founders Simon Joyce and Ben Keep acquired their creative agency from Australian media company ARN Media for just A$1 in May 2024, with newly released financial accounts confirming the deal's terms.
Deal Structure and Financial Details
ARN Media sold its 51% stake in Emotive to founders Joyce and Keep for a nominal A$1, with an additional performance-based payment of up to A$1.5 million tied to future results.
Emotive generated A$10.8 million in revenue during the full 2024 financial year, recording a profit before tax of A$72,000. The agency employed approximately 70 staff and served more than 20 blue-chip brand clients at the time of the transaction.
The agency reported a loss during the first five months of 2025, while ARN remained a shareholder. Joyce and Keep attributed this to typical slow trading in early months of the year.
Joyce described the buyout positively. "Full autonomy gives us the freedom to move faster, think longer term, and back what matters most, our people, our ideas, and the ambitions we share with our clients," he said.
ARN Media's Shift to Audio-Only Focus
ARN Media's decision to sell reflects a deliberate move to concentrate entirely on its core audio business under incoming CEO Michael Stephenson.
Emotive, a creative agency, was described by Joyce as "almost unheard of" as an investment for a radio company. ARN's original CEO Ciaran Davis backed the agency despite it having no direct connection to ARN's media operations.
Outdoor advertising business Cody remains ARN's only non-audio asset. Stephenson has been actively seeking buyers for Cody, including making trips to Hong Kong as part of that process.
Optus Departure and New Business Recovery
Emotive faced a significant client loss in June 2025 when founding client Optus consolidated its media and creative work under Accenture Song. The move simultaneously ended Optus's relationships with Emotive, M+C Saatchi, and UM.
Despite that setback, Joyce reported strong momentum following full independence. "Business is fantastic. We've got the best team we've ever had, the quality of our work has found a new level, and we've had 12 new client wins," he said.
Joyce and Keep founded Emotive a decade ago and pitched the concept directly to Davis, who took an unconventional stake in the business. Joyce credited Davis for allowing the agency to operate without interference throughout the ownership period. "They never tried to shape us into something we weren't," he said.
ARN Media has not publicly commented on the timeline for any further asset sales beyond confirming Stephenson's focus on audio.
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