A significant merger has taken shape in Australia’s media landscape, as Seven West Media and Southern Cross Media announced a groundbreaking all-scrip transaction valued at $416 million. This merger, which awaits regulatory and shareholder approval, is poised to reshape the industry, garnering positive reactions from investors.
Following the announcement on March 15, 2025, shares in both companies surged. Seven West Media’s stock rose by 7.1 percent, reaching a nearly four-week high of 15 cents, while Southern Cross Media’s shares increased by 6.0 percent, hitting a year-and-a-half high of 89 cents. The merger will see Seven West investors owning 49.9 percent of the combined entity, with Southern Cross shareholders holding 50.1 percent.
Kerry Stokes, a prominent figure in Australian media, is set to chair the new board until February 2025, after which Heith Mackay-Cruise, the current chairman of Southern Cross, will assume the role. “I have every confidence Heith will continue to guide the combined group successfully,” Stokes stated during the merger announcement.
In this new structure, Jeff Howard, the chief executive and managing director of Seven West, will retain his position, while John Kelly from Southern Cross will become the group managing director for audio. The merger aims to create a leading integrated media company with considerable reach across both metropolitan and regional Australia.
“This merger will add strength to the television, audio, digital, and publishing operations of both companies,” Stokes added. Seven West Media owns the Seven Network and several regional newspapers, while Southern Cross Media operates 99 radio stations, solidifying its status as the largest radio broadcaster in Australia.
The newly formed entity is positioned as a “one-stop shop” for advertisers, targeting the crucial demographic of individuals aged 25 to 54. Mackay-Cruise emphasized that this merger would enable significant cost savings, estimating annual reductions of $25 million to $30 million by eliminating duplicated expenses and consolidating operations.
Based on share prices prior to the merger announcement, Seven West is valued at $215 million and Southern Cross at $201 million. The 50-50 merger ratio was deemed fair by Howard, who expressed optimism about robust shareholder returns in the long term.
While questions remain regarding potential asset divestments to comply with media ownership regulations, Howard assured analysts that the companies are reviewing overlaps in their markets. “We are working through that and will keep everybody informed as that progresses,” he noted.
Earlier in 2025, Seven West Media had expanded its reach by acquiring Southern Cross’s regional television licenses, including those in Darwin and Tasmania. As the media landscape continues to evolve, this merger stands as a pivotal moment for the industry in Australia.
