UPDATE: Shareholders of Seven West Media have overwhelmingly approved a major merger with Southern Cross Media Group, securing an astounding 98% support at a shareholder meeting today. The $385 million deal is set to be reviewed by the New South Wales Supreme Court on Tuesday and is expected to take effect on January 7, 2024.
This decisive vote highlights a strategic move by Seven West Media, which owns the Seven television network and the West Australian newspaper, to enhance its market presence amid increasing competition from streaming platforms like Netflix. With less than 1% of shareholders opposing the merger, the transaction is on a clear path to approval.
Chairman Kerry Stokes expressed optimism during a video address, stating, “It’s a somewhat momentous day in Seven’s history.” His son, Ryan Stokes, who oversaw the vote, emphasized the merger’s potential to create a “much larger, stronger and better-positioned media company,” paving the way for future growth.
The merger will see Southern Cross Media, known for its popular LiSTNR online audio service, taking over Seven West Media. Although Southern Cross is legally purchasing Seven, the deal is structured so that shareholders from both companies will own approximately 50% of the new entity.
Until a new name is announced in the coming year, the merged company will operate under the Southern Cross Media brand and will trade on the stock exchange with the ticker SXL. Jeff Howard, currently the CEO of Seven, has been appointed as the new CEO of the merged company. Meanwhile, Kerry Stokes will step down as chairman on February 26, with Heith Mackay-Cruise assuming the role.
This merger is poised to significantly impact the Australian media landscape, allowing the combined entity to compete more effectively in the rapidly growing digital audio and podcasting sectors. The strategic alignment is seen as a critical response to the challenges faced by traditional media in a shifting landscape, ensuring both financial stability and a broader audience reach.
Stay tuned for updates as this story develops, and watch for the court’s decision on the merger next week.
