Two of Australia’s largest media companies - Seven West Media and Southern Cross Media Group - have announced plans to merge.
The proposal still requires approval from regulators and shareholders before it can proceed.
If approved, it would create Australia’s largest locally owned media organisation.
The merger would see billionaire Kerry Stokes step down as Seven’s chairman, with a new chair appointed to lead the combined company by February.
The Companies
Seven West Media owns a number of major media brands including the Seven broadcast network, 7NEWS online, and The West Australian newspaper.
It holds the rights to the AFL and Australian cricket, as well as My Kitchen Rules and Home and Away.
SCA is one of the country’s largest audio content companies, producing content across 104 radio stations, 800 podcasts, and 50 music stations.
It includes the Hit Network, Triple M and LiSTNR, which houses podcasts like Hamish & Andy and The Imperfects.
Merger
On Tuesday, Seven and SCA announced plans to create one consolidated company that would bring free-to-air TV, audio, and digital publishing services under one roof.
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Under the proposed deal, Southern Cross would hold a 50.1% stake, while Seven would retain 49.9%.
The companies stated that the merger would increase audience sizes and ad revenue, as well as lead to savings of $25-30m by combining business functions such as accounting and marketing.
The boards and directors of both organisations confirmed they intend to “unanimously” vote in favour of the deal.
In a statement, outgoing Seven chair Kerry Stokes said it was an “important merger” as the new company would “be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers”.
In the past year, Seven reported a 4% drop in revenue to $1.35b, and SCA reported a revenue increase of 5% to $422m.
Media concentration
The deal is expected to have major implications for Australia’s heavily concentrated media landscape.
A 2024 report led by the University of Sydney found Australia has the second-highest media concentration in the world.
Four companies, including Seven, own 84% of Australia’s newspaper market, and four companies, including Seven, own 87% of Australia’s television market.
Meanwhile, four companies, including SCA, own 77% of Australia’s radio and audio market.
