Media figure and businessman John Singleton will form an alliance with mining magnate Gina Rinehart at Fairfax, after buying a small stake in the company.
In a statement released last night, Mr Singleton announced that his company, Gutenburg Investment, had bought shares in Fairfax because of the board's decision to deny him the sale of its talk radio assets.
The statement also says he will consult with Mrs Rinehart on matters affecting the company, as the pair have a long friendship, spanning decades.
Mrs Rinehart's Hancock Prospecting holds an almost 15 per cent stake in Fairfax, while Mr Singleton's share is reportedly less than 1 per cent.
Media analyst Peter Cox says the move should not come as a surprise.
"Singleton was very upset when Fairfax would not sell the radio stations to him which he offered $200 million for, which is probably a lot more than what they would get for the radio station today, so Singleton is now moving in concert if you like with Gina Rinehart to have more effect at Fairfax," he said.
Mrs Rinehart was denied a seat on Fairfax's board when she refused to sign a charter of editorial independence earlier this year.
She ramped up her shares in the company before launching her board bid, but then tried to dump a third of her shares in August after the bid failed.
The sale was quickly withdrawn due to a lack of interest.
Mr Singleton has flagged he wants the Fairfax charter reviewed, but insists he has no intention of compromising the editorial integrity of Fairfax journalism.