Seven West Media (SWM) and Southern Cross Austereo (SCA) have issued a joint statement proposing a merger of the two media companies.
SWM owns the Seven Network throughout virtually the whole of Australia (only the Spencer Gulf/Broken Hill market is excluded) as well as news outlets The West Australian, Perth Now and The Nightly and has a half-share in Network Ten affiliates in Darwin, Tasmania, regional Western Australia and remote Central and Eastern Australia, while SCA owns the Hit and Triple M networks and audio platform Listnr.
Under the Proposed Merger, SWM shareholders will receive 0.1552 SCA shares for every SWM share, which would result in SWM shareholders and SCA shareholders owning 49.9% and 50.1% of the combined business, respectively.
The proposal will create a media giant across radio and television, further consolidating the Australian media market. SWM has already completed a merger with its former regional partner, Prime Media Group, and Network Ten has taken over SCA’s former television assets in the eastern states. Ironically, SCA had only recently sold off its remaining TV outlets to SWM, marked at the time as its exit from the television business.
The proposal is subject to customary conditions and regulatory approvals — including ACMA, ACCC and ASX — and the approval of SWM shareholders.
In a statement, Chairman of SWM, Kerry Stokes AC, said: “The combination of these two companies brings together the best creators of media content in the country, delivering significant financial and strategic benefits for SWM shareholders. This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers. It will add strength to each of the combined businesses’ television, audio, digital and publishing operations across the country.”
Jeff Howard, Managing Director and CEO of SWM, added: “This combination marks a pivotal moment for Australian media. By bringing together the complementary assets and brands of SWM and SCA, we are creating a truly national, diversified media organisation with extensive scale and reach across our free-to-air television, streaming, audio, digital and publishing assets.”
Heith Mackay-Cruise, Chairman of SCA, said: “This merger will create one of Australia’s leading Total TV, Audio and Digital platforms, with the scale, reach and diversification to better serve Australian audiences and communities. The combination of SCA’s and SWM’s leading brands on broadcast, audio and digital platforms establishes national leadership across the critical 25-54 ‘audience that matters’ demographic. The merged entity will offer partners and clients a ‘one stop shop’ for opportunities to reach this valuable audience across all mediums, leveraging shared content and commercial opportunities to add value beyond the initial cost synergy estimates.”
YouTube: 7NEWS Australia
SWM and SCA have agreed that Howard will be the Managing Director and CEO of the combined group and John Kelly will assume the role of Group Managing Director, Audio. Stokes will assume the role of Chair of the Board of Directors until stepping down from the Board in February 2026 and transitioning the role to Mackay-Cruise.
Source: Seven West Media, Southern Cross Austereo
