U.S. entertainment giant Discovery paid $ 20 million in cash for TV3, Newshub and the rest of MediaWorks’ television business, accounts MediaWorks filed with the Companies Office Show.

Total proceeds from the sale were $ 23.5 million including TV companies’ accounts receivable.

The sale price illustrates the low valuations now attached to mainstream media assets due to the shift in advertising revenue to the internet.

MediaWorks previously reported a loss of $ 4.8 million for the year at the end of December.

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* Newshub will close its Dunedin newsroom
* Discovery restructures its operations as it stops buying TV3
* MediaWorks evaluates its acquisitions despite a loss of $ 4.8 million

Revenue from its continuing operations not bought by Discovery, which are its radio and outdoor advertising businesses, fell from $ 2 million to $ 184 million, according to its full accounts.

Managing Director Cam Wallace said Monday that MediaWorks radio advertising revenue has remained strong during the pandemic and has improved this year, giving the company a “clear path to profitability.”

MediaWorks was evaluating some potential acquisitions that could give its core business “more scale” and which could add to its portfolio, he said.

Discovery announced in April a restructuring of its New Zealand and Australian operations, which would impact dozens of employees, following its acquisition of TV3 and its journalism arm Newshub.

Confirmed changes include the closure of Newshub’s Dunedin newsroom.