Billionaire Kerry Stokes has announced his intention to step down as chairman of Seven West Media if the proposed merger with Southern Cross Austereo proceeds successfully. The merger, unveiled on Tuesday, would consolidate the Seven Network, West Australian Newspapers, and the Triple M and Hit radio networks into a single entity. The deal aims to create a stronger, more diversified media group in a rapidly evolving market.
Under the terms of the agreement, Seven West shareholders would receive 0.1552 shares in Southern Cross for each Seven share held, resulting in Seven West owning 49.9 per cent of the new group. Southern Cross shareholders would retain a 50.1 per cent ownership stake. Seven West Media operates Australia’s number one free-to-air television network in Seven, as well as the West Australian newspaper. Southern Cross Austereo is one of Australia’s leading media companies, reaching 95% of the Australian population through its radio, television, and digital assets.
Following the merger, Stokes will remain chairman until February, after which Southern Cross chairman Heith Mackay-Cruise will assume the role. Jeff Howard, the current chief executive of Seven West, will become chief executive of the merged entity, while John Kelly, the chief executive of Southern Cross, will take on the role of managing director of audio. The merger is projected to yield $25 million in cost synergies and enhance the scale of the combined media assets.
The transaction is subject to regulatory approvals and the approval of Seven West shareholders. Seven Group Holdings, which owns 40 per cent of Seven West, has indicated it will vote in favour of the deal. The merger represents a strategic move to counter the challenges posed by global tech giants and streaming services in the traditional media landscape.
