Seven West Media and Southern Cross Media Unite to Forge Australia’s Media Giant

A New Chapter in Australian Media

In a landmark move set to reshape the Australian media landscape, Seven West Media (ASX – SWM) and Southern Cross Media (ASX – SXL) have announced a proposed all-scrip merger. The deal aims to combine two of the nation’s most prominent media companies, creating an integrated platform that spans free-to-air television, streaming, audio, digital, and publishing assets.

The merger will see Southern Cross acquire all shares in Seven West Media through a Scheme of Arrangement, with SWM shareholders receiving 0.1552 shares in Southern Cross for each SWM share held. Upon completion, the combined entity will be almost evenly split, with SWM shareholders owning 49.9% and SCA shareholders 50.1%, reflecting the complementary strengths of both businesses.

Strategic Scale and Synergies

The combined group is positioned to become a leading integrated media company with extensive reach across metropolitan and regional Australia. By leveraging the combined strengths of the Seven Network, 7plus streaming service, LiSTNR audio platform, and Southern Cross’s regional radio dominance, the new entity aims to attract and grow high-value audiences.

One of the key financial attractions of the merger is the forecasted $25 million to $30 million in annualised cost synergies expected within 18 to 24 months post-completion. These savings will come from rationalising duplicated costs, consolidating property footprints, and improving operational efficiencies. Additionally, the companies are exploring further revenue synergies, particularly through enhanced cross-platform advertising solutions that leverage combined data and audience insights.

Governance and Leadership

The governance structure of the merged group reflects a balanced approach, with an initial board comprising four representatives from Seven West Media and three from Southern Cross. Kerry Stokes AC, a significant shareholder and nominee of SGH Limited, will serve as Chair until February 2026, after which Heith Mackay-Cruise of Southern Cross will take over. Jeff Howard will continue as Managing Director and CEO, while John Kelly is appointed Group Managing Director, Audio, underscoring the importance of the audio segment in the combined business.

Regulatory and Shareholder Approvals Ahead

The transaction remains subject to customary regulatory approvals from bodies such as the Australian Communications and Media Authority (ACMA), the Australian Competition and Consumer Commission (ACCC), and the Australian Securities Exchange (ASX). Seven West Media shareholders must also approve the Scheme, requiring at least 75% of votes cast and a majority of shareholders present to vote in favour. The SWM board unanimously recommends the transaction, and SGH Limited has committed to voting its 40.2% stake in favour.

If approved, the merger will create a media powerhouse with a combined market capitalization of approximately $417 million on day one, enhancing liquidity and investor relevance. The combined entity’s diversified revenue base, including exposure to high-growth digital platforms, positions it well for future growth in a rapidly evolving media environment.

Looking Forward

The merger is expected to be completed following a shareholder meeting anticipated by the first quarter of 2026, subject to regulatory clearances. As the media industry continues to consolidate, this deal signals a strategic alignment designed to compete effectively across multiple platforms and audience segments, from metropolitan to regional markets.