Seven West Media poised to join with Southern Cross in latest Aussie media merger

The Australian commercial broadcasting sector is poised for further disruption following Seven West Media (SWM)’s announcement that it intends to merge with the Southern Cross Media Group, creating one the biggest diversified media entities in the market.

Kerry Stokes

Under the proposed merger both ASX-listed companies will integrate their respective free-to-air television, streaming, audio, digital and publishing assets. Based on current market capitalisation, this would value the newly merged entity at AU$416 million (US$275m).

SWM, the owner of the Seven Network, indicated that the strategic move was part of its drive to support media consolidation in Australia.

Kerry Stokes, chair of SWM, said: “The 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. This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers.”

Described as a “pivotal moment for Australian media” by SWM chief and MD Jeff Howard, the national diversified media organisation would have extensive scale and reach, particularly in regional areas.

Under the proposed integration plan, the companies have negotiated that Howard would become the MD and CEO of the new combined group with SCA chief John Kelly taking on the role of group managing director, audio.

Significantly, Stokes has revealed that he will step down as chair of the board in February 2026 with the position handed to Heith Mackay-Cruise.

Following the merger the combined board would comprise of four representatives from the SWM board, Teresa Dyson, Howard, Michael Malone and Ryan Stokes and three representatives from the SCA board, Mackay-Cruise, Marina Go and Ido Leffler.

The companies told shareholders that the proposal would deliver “operational leverage and financial strength, supporting the funding of organic and inorganic growth and capital management initiatives” with a forecast of AU$25m-30 million of cost synergies.

The deal is subject to shareholder and regulatory approvals.