Credit: Marcus Reubenstein via Unsplash
The newly merged Seven West Media and Southern Cross Media Group has debuted on the Australian Stock Exchange (ASX) today, trading under the ticker SXL.
The merger creates one of Australia's largest integrated media companies, combining Seven's national television network and publishing assets with Southern Cross' radio footprint and digital audio platform LiSTNR.
The merged company now controls 104 radio stations spanning the Hit Network and Triple M brands, the Seven Network television operation with national coverage, multiple publishing assets including The West Australian and The Sunday Times, and digital platforms including 7plus and LiSTNR.
Revenue is forecast at $1.96 billion, with operating profit of $233 million.
The entity remains listed on the ASX under Southern Cross Media's existing ticker symbol SXL, though a company name is expected to be announced in coming months.
Leadership of the combined group reflects the partnership structure.
Howard will serve as managing director and CEO, with total remuneration potential of $3.75 million comprising a base salary of $1.25 million plus short-term and long-term incentive targets of $1.25 million each. John Kelly becomes Southern Cross Group Managing Director, Audio.
“As a unified business, we can unlock the opportunity to extend our exceptional storytelling capabilities into new audiences, leveraging each of our core capabilities to empower the whole," he said.
“SCA’s strength in audio and track record of delivering results speaks for itself. Seven West Media’s platform leadership and content powerhouse status is unmatched. Together, our combined opportunity is extraordinary.”
Kerry Stokes, the chairman of Seven West Media, will remain in the role until his retirement on February 26, when SCA's chair Heith Mackay-Cruise assumes the role.
The board comprises four representatives from Seven West Media, Teresa Dyson, Jeff Howard, Michael Malone and Ryan Stokes, and three from Southern Cross Media, Heith Mackay-Cruise, Marina Go and Ido Leffler. Both Stokes and Malone will step down at the end of February 2026.
Seven Group Holdings, controlled by the Stokes family and Seven West's largest shareholder with 40.2% of the company, retains about 20% of the combined entity through Ryan Stokes' representation.
Following the merger's implementation, Seven CFO Craig Haskins announced his intention to retire after a transition period during the current quarter. Toby Potter will remain as interim CFO while a search is completed.
The also company identified Howard and Potter as key management personnel.
Seven West shares jumped more than 14% to $0.16, whilst SCA shares jumped over 7% to $0.90.
The deal structure gave Seven West shareholders 0.1552 SCA shares for every share held, resulting in a near-even ownership split with SCA shareholders owning 50.1% of the combined entity and Seven West shareholders holding 49.9%.
Howard said revenue growth, rather than consolidation, drove the merger.
"Put simply, this merger has not been driven by the need for increased size, but rather from the substantial audience and revenue benefits that will be mined from the highly complementary and scalable offering provided by combining our respective TV and audio assets both terrestrially and digitally," he said.
The merged entity will deliver between $25 million and $30 million in annual pre-tax cost synergies within 18 to 24 months, positioning itself as a one-stop shop for advertisers targeting the 25-54 demographic across television, radio, digital and publishing platforms.
By early October, media and advertising industries were assessing the implications. Industry observers said the merger would simplify media planning, bringing together complementary assets covering metropolitan and regional markets across multiple platforms.
Seven West expressed enthusiasm about the combination.
At Seven's upfront event in late October, Howard spoke of the "tremendous potential" of combining 7plus and LiSTNR, though the company's focus remained on existing operations.
SCA revealed it had considered a number of offers before proceeding with the Seven West proposal.
CEO John Kelly said the company had invested a lot of time and resources evaluating and responding to proposals put forward by third parties before making a decision.
The merger faced a test in early November when an independent expert report, commissioned by SCA and prepared by Kroll Australia, concluded the scheme was in the best interests of SCA shareholders.
The report described the deal as a merger of equals and found the proposed 50.1/49.9 ownership split to be fair, with SCA shareholders set to hold an indicative post-transaction value exceeding their contributed equity.
Not all shareholders were convinced.
Activist investor Sandon Capital, which held about 11.3% of SCA stock, opposed the merger, arguing it undervalued the company and moved away from SCA's all-about-audio strategy.
The Australian Competition and Consumer Commission (ACCC) approved the merger on November 13.
ACCC Deputy Chair Mick Keogh said Australian media markets were being transformed by consumers' growing preference for digital media.
"This shift is leading advertisers to invest more heavily in online and digital channels," he said.
Two weeks later the Australian Communications and Media Authority (ACMA) also granted approval, though with conditions.
The ACMA noted the merger would result in temporary breaches of media diversity rules in 17 commercial radio licence areas, requiring SCA to provide a court-enforceable undertaking to divest commercial radio and/or television broadcasting licences in affected areas across Queensland, Victoria and Western Australia.
SCA responded by committing to regulatory reform of existing media ownership laws including potential amendments to the Broadcasting Services Act which would allow SCA to retain all existing commercial broadcasting licences.
On December 22, Seven West Media shareholders delivered an overwhelming endorsement of the merger, with 99% of shares cast voting in favour at a meeting in Sydney.
Howard told shareholders the result reflected strong investor confidence that a larger, more diversified group can better withstand pressure from global streamers such as Netflix and shifting audience habits.
Three days later, on Christmas Eve, the New South Wales Supreme Court provided the final legal clearance, paving the way for the merger to take effect.
The merged entity faces the challenge of realising the promised cost synergies whilst competing against global streaming platforms and the shift in advertising spend towards digital channels.
The merger represents one of the most significant media consolidations in Australian history, reshaping the competitive landscape for both advertisers and audiences.
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