When Gina Rinehart pushed the go button on buying 10 per cent of Fairfax Media she put the entire sector under the blowtorch, both in investment terms and from the perspective of the role the media has in influencing political and social policy.
The outcome of her raid is yet to play out but Rinehart's next move will surely be to try to win a board seat as well as increase her stake in Fairfax to just under 20 per cent.
In the meantime, her phone is no doubt running hot as she tries to encourage some of her like-minded rich friends to put their money where their mouths are and buy stakes in the biggest and most powerful newspaper group in the country.
While the challenges facing the traditional media industry have been well documented, traditional media is still the most effective way to influence state and federal politics.
Kerry Stokes knows it, Rupert Murdoch has made an art out of it and James Packer found out how important it is when he sold out of Nine Network and lost some of his clout in Canberra. It didn't take him long to jump back on the media train with a 10 per cent stake in the Ten Network.
What is interesting is the timing of Rinehart's raid, which comes just before the release of a report into media convergence. There is no doubt there will be sweeping changes to the way media companies and content are regulated, which will further loosen cross-media ownership laws.
If the recommendations become legislation, it will spark a number of takeovers. For instance, Seven would be able to buy Prime, Nine could own WIN TV, Ten could own Southern Cross and News Ltd could own Ten.
Buying a stake in Fairfax and pushing for a board seat does two things: it gives Rinehart influence either overtly or more subtly, and it gives her a seat at the table in any potential takeover with the ability to either encourage it or block it.
When a few radio stations were put up for sale in regional mining towns she called her old friend John Singleton and asked him if he was going to buy them. She told him she would be happy if he was, but very worried if "they fell into the wrong hands". This gives an insight into what she thinks about the media and its powers.
Rinehart has extreme views on the future of Australia and, like her father, Lang Hancock, she believes the media is the most effective tool to influence change.
She saw no better evidence of this when she jumped on the back of a flatbed truck in 2010 railing for the then Rudd government to "axe the tax". A few weeks later Kevin Rudd was gone and Rinehart's appetite for influence was rekindled. This came after years of public silence during legal battles with her stepmother, Rose Porteous, over the family business, Hancock Prospecting.
Rinehart's wealth now stands at more than $20 billion (when iron ore prices were fetching $US140 a ton at the end of January 2012 and after she had completed a deal with South Korean group Posco, which paid $1.5 billion for a 15 per cent stake in her Roy Hill iron ore project).
Today she stands as the richest Australian. Some believe it is down to luck and a lot of cunning, while others believe it is the culmination of hard work, determination and a ruthlessness rarely seen.
Whatever the case, the vast quantities of iron ore and coal she owns have set her on a course to become the richest woman in the world. All it will take is China and India to continue their voracious appetite for iron ore and coal, and the prices to stay high, and she is on track to become the first woman to break the $30 billion wealth barrier.
After Tuesday night's share raid, Rinehart is sitting on 12 per cent of Fairfax. She had hoped to get that stake to 15 per cent but at 81¢ a share, investors obviously felt it was too cheap a price. But it is only a matter of time before she creeps up.
Her move has intensified the debate on the future of media and its role in society. Talkback radio has been inundated with callers fearful of what it means to have the richest person in the country, and one of the richest women in the world, moving into the media sector.
Fairfax has prided itself on its independence and so the chances of her redirecting editorial content are slim. But perception is reality and the company will have to ensure that she does not appear to be wielding influence.
As one senior executive said: "Anyone that wanted WA to secede, thought [of] using a nuclear bomb to develop better harbour facilities, does not believe in the science of climate change, thinks the mining resources tax was unfair, wants to import cheap Asian labour to help her make even more money and MOST importantly has no time for any views other than her own is not the ideal person to influence media in this country."
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