By Duncan Evans
Copyright news
The deal, if successful, will create a free-to-air TV, audio and digital publishing giant that will transform Australia’s media landscape.
Seven West’s flagship TV channel boasts a number of hit shows including My Kitchen Rules and Home and Away.
It also holds the broadcast rights to the AFL and cricket.
Alongside TV, its digital and publishing assets include The West Australian newspaper in Perth and The Nightly, a free national online news service.
Southern Cross owns the Hit Network, Triple M and the Listnr app.
Seven CEO Jeff Howard said the merger would create a “truly national, diversified media organisation”.
“This combination marks a pivotal moment for Australia media,” he said.
“By bringing together the complementary assets and brands of SWM and SCA, we are creating a truly national, diversified media organisation with extensive scale and reach across our free-to-air television, streaming, audio, digital and publishing assets.”
Under the terms of the all-scrip deal, Southern Cross would take majority control of the new company.
Seven West shareholders would receive 0.1552 Southern Cross shares for every Seven West share, which would result in Southern Cross shareholders owning 50.1 per cent and Seven West shareholders owning 49.9 per cent of the combined group.
The boards of both companies back the merger, which must receive regulatory and shareholder approval before coming into effect.
Billionaire Kerry Stokes owns 40 per cent of Seven West through his conglomerate Seven Group Holdings and serves as chairman of the company.
He backs the merger and said he would step down as chairman if it goes through.
“The combination of these two companies brings together the best creators of media content in the country, delivering significant financial and strategic benefits for Seven West shareholders,” he said.
“This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers.
“It will add strength to each of the combined businesses’ television, audio, digital and publishing operations across the country.”
In outlining the “strategic and financial benefits” of the deal, the two companies said the combined group would deliver a “cohesive content strategy that combines news, sports and entertainment”.
They also said the new company could harness “the power of scaled data and insights” across platforms to accelerate growth in audiences and revenue.
Mr Howard would also continue as CEO of the new group, the companies said.
The proposed merger was announced pre-market on Tuesday morning and before the open, Seven West held a market capitalisation of $215.5m.
The company has struggled in recent years with declining TV advertising revenue and disruptions from the streaming era.
In its results for the 2025 financial year, Seven West reported a 62 per cent slump in profits from 2024 to just $17m.
Revenues declined 4 per cent from $1.41bn to $1.35bn.
Shares in Southern Cross Media, meanwhile, traded at 84c for a market cap of $200m.
It is expected Seven West shareholders will vote on the proposal in the first quarter of 2026.
