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Quote:New Zealand's largest newspaper and magazine publisher is taking a big step into the internet business.

John Fairfax Holdings Ltd today announced it is buying the auctions and classified advertising site TradeMe.

Fairfax is paying $NZ700 million [US$463 million] for the business which it says accounts for over 60% of New Zealand's web traffic. An extra$NZ50m will be paid if TradeMe meets further earnings targets....

TradeMe has 1.2 million members who are expected to host 35 million auctions this year. The business was founded in 1999 and has 30,000 - 50,000 users on line at any one time.

With more than 2 million domestic visitors per month, TradeMe is described as the most visited website in NZ.

Quote:Mr Kirk said Fairfax did not intend making any changes to TradeMe, which will continue to operate as a stand-alone business.

Founder Sam Morgan and other key executives will remain with the business. TradeMe based in Wellington, has 48 employees.

Quote:"Trade Me has well established plans for future expansion, and we will support the management to see them successfully implemented. The business will have the benefit of a joint advisory board drawn from current Trade Me directors and Fairfax executives.

"I am delighted Sam Morgan will remain with Trade Me for a good period of time. We also welcome as new colleagues the entire Trade Me staff."

Sam Morgan said: "Thousands of Kiwis make their primary or secondary income on Trade Me. That's a responsibility we take very seriously and so keeping the marketplace running smoothly and sticking to our existing plans remains our focus...

Quote:John Fairfax Holdings Limited [ASX:FXJ] has reached agreement to acquire Trade Me Limited, New Zealand's leading internet business...

Quote:SELLING junk in New Zealand would not normally be seen as a road to riches. But for Sam Morgan, a 30-year-old uni drop-out from Wellington, it has turned out to be a $220 million highway.

Morgan has just sold his auction-cum-portal site, trademe.co.nz, to the Fairfax publishing group for a sweet $670 million all-up - and as he noted in typical understated Kiwi fashion: "We don't pay capital gains tax in New Zealand."

Trade Me now dominates the New Zealand internet like no other digital operator - with 63 per cent of all impression traffic and more than 2 million site visitors a month in a population of 4 million.

Yesterday eBay had 14,371 items for sale from New Zealand. Trade Me had over half a million...

Quote: "Smart," is how people describe Sam Morgan, the founder and chief executive of Trade Me.

Yesterday Mr Morgan proved he had $700 million worth of smarts, selling his online trading business to Australian media company Fairfax.

Mr Morgan, 30, flew to Australia to speak at Fairfax's half-year results briefing and explain the online company he started in 1999 as a "garage sale" of second hand goods...