Seven West Media emerges as largest regional broadcaster in Oz following Southern Cross asset deal

Australia’s Seven West Media (SWM) has finalised its acquisition of the regional television assets held by Southern Cross Media Group.

Jeff Howard

The completion of the transaction, which includes the television licences and associated assets covering Tasmania, Darwin, Spencer Gulf, Broken Hill, Mt Isa and Remote, Central and Eastern Australia, now makes SWM the largest regional commercial television broadcaster in Australia.

For Southern Cross, the deal represents the shedding of all its television assets, allowing it to commit to a purely audio company focus. The company said it has used the initial upfront cash payment of A$3.75m (US$2.47m) from the sale of the television assets to reduce net debt.

The total amount paid for SCA’s television assets is in the range of A$19 million to A$24 million, this estimate includes both the sale of assets to SWM and the previously announced profit share proceeds of $15 million to $20 million from the sale of the three broadcast  licences to Network Ten, completed in December.

“SWM is pleased to have completed this small but strategically important acquisition that solidifies our position as Australia’s leading regional commercial television broadcaster,” said SWM managing director, Jeff Howard.

Howard added the network was committed to ensuring regional audiences will be able to access local and national news, sports and premium entertainment programming.