Proposed merger brings together media giants as Kerry Stokes flags retirement from February 2026.
Seven West Media and Southern Cross Media have agreed to a merger to create a leading integrated Total TV, Audio and Digital platform.
The merge combines two media businesses with strong positions in the market across their free-to-air television, streaming, audio, digital and publishing assets.
SWM Chair Kerry Stokes 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.”
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.
SWM and SCA have agreed that Jeff Howard (pictured left), will be the Managing Director and CEO of the combined group and John Kelly (pictured right) will assume the role of Group Managing Director, Audio.
Kerry 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 Heith Mackay-Cruise.
Following this the combined Board will comprise four representatives from the SWM Board (being Teresa Dyson, Jeff Howard, Michael Malone and Ryan Stokes), and three representatives from the SCA Board (being Heith Mackay-Cruise, Marina Go and Ido Leffler). Mr Leffler has indicated his intention to continue on the combined Board through the acquisition and retire from the Board as at 30 June 2026.
The Chairman of SWM, Kerry Stokes said: “Following the improved performance of Southern Cross Media since Heith Mackay-Cruise assumed the Chairmanship, I have every confidence Heith will continue to guide the combined group successfully. Following my retirement from the Board in February 2026 I intend to continue to support the Chair and Board wherever I can add value.”
In May Seven entered into an agreement with Southern Cross Media to acquire the television licences and associated assets operating in Tasmania, Darwin, Spencer Gulf, Broken Hill, Mt Isa and Remote, Central and Eastern Australia.
Further details will be agreed at a later stage.