The deal, if approved, would create a media powerhouse with reach across both metropolitan and regional Australia, combining Seven\u2019s TV dominance with Southern Cross\u2019s radio networks and digital assets.<\/p>\n
According to Seven, the proposed merger is designed to strengthen the company\u2019s ability to serve audiences, advertisers and partners nationwide, while also unlocking potential cost and revenue synergies.<\/p>\n
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Supplied:<\/p>\n
Seven West Media and Southern Cross Media agree a merger to create a leading integrated Total TV, Audio and Digital platform<\/p>\n
Seven West Media Limited (ASX: SWM) today announced that it has entered into a Scheme Implementation Deed (SID) with Southern Cross Media Group Limited (ASX: SXL, \u201cSCA\u201d) in relation to a proposed merger between the parties by way of a scheme of arrangement (Proposed Merger).<\/p>\n
Highlights:<\/p>\n
The Proposed Merger will establish a leading integrated media company with extensive scale and reach across metropolitan and regional Australia<\/p>\n
Combines two highly complementary businesses with strong positions in the Australian advertising market across their free-to-air television, streaming, audio, digital and publishing assets<\/p>\n
The combined business will be strongly positioned to attract and grow high value audiences (25-54), delivering revenue and earnings growth and unlocking significant shareholder value<\/p>\n
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<\/p>\n
SWM and SCA management anticipate between $25-30 million annual pre-tax cost synergies, with incremental revenue synergies also expected to be created<\/p>\n
The Proposed Merger will be effected by way of a SWM scheme of arrangement, with the unanimous recommendation of the SWM Board1<\/p>\n
The Proposed Merger is consistent with SWM\u2019s stated strategic position of being in support of media consolidation in Australia<\/p>\n
In recommending the proposal, the Chairman of SWM, Kerry Stokes AC, said: <\/p>\n
\u201cThe 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.\u201d <\/p>\n
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\u201cThis is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers.\u201d <\/p>\n
\u201cIt will add strength to each of the combined businesses\u2019 television, audio, digital and publishing operations across the country.\u201d<\/p>\n
Jeff Howard, Managing Director and CEO of SWM, added: \u201cThis 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.\u201d<\/p>\n
Heith Mackay-Cruise, Chairman of SCA, said: \u201cThis merger will create one of Australia\u2019s leading Total TV, Audio and Digital platforms, with the scale, reach and diversification to better serve Australian audiences and communities. The combination of SCA\u2019s and SWM\u2019s leading brands on broadcast, audio and digital platforms establishes national leadership across the critical 25- 54 \u2018audience that matters\u2019 demographic. The merged entity will offer partners and clients a \u2018one stop shop\u2019 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.\u201d<\/p>\n
As diversified media companies, SWM\u2019s and SCA\u2019s joint preliminary synergy assessment has identified annual pre-tax cost synergies of $25-30 million, to be realised within 18-24 months post completion. These synergies comprise the reduction of shared corporate overheads and
operating expense duplication and facility rationalisation. <\/p>\n
Additionally, SCA and SWM have jointly explored the opportunity for revenue synergies by enhancing audience reach and advertising scale. Further work continues to examine potential revenue synergy quantification and structure an integration plan to bring the best of both companies together.<\/p>\n
SWM and SCA have agreed that Jeff Howard will be the Managing Director and CEO of the combined group and John Kelly will assume the role of Group Managing Director, Audio. Kerry Stokes AC 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. <\/p>\n
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Following this the combined Board will comprise four representatives from the SWM Board (being Teresa Dyson, Jeff Howard, Michael Malone and Ryan Stokes AO), 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.<\/p>\n
The Chairman of SWM, Kerry Stokes AC said: \u201cFollowing 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.\u201d<\/p>\n
Further details regarding the combined group\u2019s executive team will be agreed at a later stage.<\/p>\n
*This article updates<\/p>\n
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