Nine valued at up to $2.9bn ahead of float PRIVATELY owned media company Nine Entertainment has been valued at between $2.46 billion and $2.93bn by banks selling a float of the company that will take place in December. Pre-marketing research by Macquarie Group and Deutsche Bank, the joint lead managers on the float, was distributed to fund managers yesterday. Macquarie has valued the television and entertainment group at 8.1-9.6 times on an enterprise value-to-earnings before interest, tax, depreciation and amortisation basis. The investment bank has forecast Nine to post EBITDA of $305 million in the 2013 fiscal year, while Deutsche Bank has valued Nine at $2.48bn-$2.79bn, or 8.1 times to 9.1 times. Well-placed sources struck a conservative note and said 8.5 to nine times was a more realistic valuation. Nine's main rival, Seven West Media, owner of the No 1-placed free-to-air network, is valued at about 7.5 times. At close of trade yesterday, Seven was capitalised at $2.4bn. It is understood Nine's shareholders have already voted in favour of the float, ahead of the company's annual general meeting on Monday. Pricing will be determined next month, with Nine scheduled to begin a bookbuild at the end of November. Nine will aim to officially list on the ASX on December 9, but the timing could be pushed back by up to a week due to Nine agreeing a deal to take full ownership of digital media company Mi9. The prospectus will be distributed at the end of the month. It is expected to reveal a $100m revenue jump, boosting the chances of a successful pitch to investors. The revenue boost has been driven by Nine earning a higher share of the advertising market on the back of increasing its ratings. But earnings before interest and tax are believed to be almost flat, as the costs of sports broadcast rights and last year's London Olympics eat into profitability. Nine was expected to get a $100m-plus windfall from the 2012 Games, but incurred an estimated $25m hit due to a weak advertising market. Nine's earnings have also been affected by higher programming costs due to bigger annual payments to the National Rugby League, which soared to an estimated $90m a year from about $40m after a new deal was agreed to last year. Nine chief executive David Gyngell has told potential investors that the advertising market would tick up by 2.5 per cent this calendar year.