Southern Cross and Seven West Media Unite to Dominate Australia’s TV and Audio Markets
Southern Cross Media Group and Seven West Media have agreed to merge in an all-scrip deal, creating a dominant integrated TV, audio, and digital platform across Australia. The merger aims to unlock significant cost synergies and expand audience reach across metropolitan and regional markets.
- All-scrip merger with Southern Cross shareholders owning 50.1%, Seven West shareholders 49.9%
- Expected $25m-$30m annual cost synergies within 18-24 months post-completion
- Combined entity to leverage leading TV, streaming, audio, and digital assets
- Balanced board with key leadership from both companies
- Transaction subject to regulatory and shareholder approvals
A Strategic Media Consolidation
In a landmark move for the Australian media landscape, Southern Cross Media Group Limited (SCA) and Seven West Media Limited (SWM) have entered into a Scheme Implementation Deed to merge their operations. This all-scrip transaction will create a leading integrated media company with extensive reach across free-to-air TV, streaming, audio, digital, and publishing platforms.
The combined entity will be uniquely positioned to serve both metropolitan and regional audiences, leveraging the complementary strengths of SCA’s Hit and Triple M radio networks and LiSTNR digital audio platform alongside Seven West’s free-to-air TV and 7Plus streaming service. Together, they aim to offer advertisers a seamless, scalable solution to reach high-value audiences across multiple formats.
Governance and Ownership Structure
The merger will see Southern Cross shareholders hold a slight majority with 50.1% ownership, while Seven West shareholders will own 49.9% of the combined business. The board will be balanced, initially comprising four representatives from Seven West and three from Southern Cross, with Kerry Stokes AC set to chair until February 2026 before handing over to Heith Mackay-Cruise of Southern Cross.
Leadership continuity is assured with Jeff Howard as CEO and John Kelly appointed Group Managing Director, Audio, reflecting a blend of expertise from both companies. This governance structure aims to provide stability and strategic direction as the new group navigates integration and growth.
Unlocking Synergies and Growth Opportunities
The merger is expected to deliver $25 million to $30 million in annualised cost synergies within two years, driven by efficiencies such as consolidating duplicated locations, streamlining back-office functions, and reducing listing and corporate costs. Beyond cost savings, the companies anticipate further revenue synergies through cross-platform promotion, enhanced data analytics, and integrated advertising solutions.
With a combined market capitalization of approximately $417 million at close prices, the new entity will boast a diversified revenue base, including exposure to high-growth digital platforms like 7Plus and LiSTNR. The integration of premium content across TV, audio, and digital channels is designed to attract and grow high-value audiences, particularly in sports, news, and entertainment segments.
Regulatory and Shareholder Hurdles Ahead
The transaction remains subject to customary regulatory approvals from bodies such as the Australian Communications and Media Authority (ACMA) and the Australian Competition and Consumer Commission (ACCC), as well as shareholder approval from Seven West Media. The latter requires at least 75% of votes cast and a majority of shareholders present to endorse the scheme.
Seven West’s largest shareholder, SGH Limited, which holds 40.2% of shares, has already indicated its intention to support the merger. However, the deal’s completion timeline depends on regulatory review and shareholder meetings, expected no later than the first quarter of 2026.
A New Chapter for Australian Media
This merger signals a significant consolidation in Australia’s media sector, aligning with broader industry trends toward integrated, multi-platform content delivery. By combining their assets and expertise, Southern Cross and Seven West aim to enhance their competitive position, improve operational efficiencies, and deliver greater value to shareholders and advertisers alike.
As the media landscape continues to evolve rapidly with digital disruption and changing consumer habits, this combined entity will be closely watched for how effectively it leverages its scale and content to capture audience attention and advertising dollars.
Bottom Line?
The merger sets the stage for a formidable Australian media powerhouse, but regulatory scrutiny and integration execution will be critical next steps.
Questions in the middle?
- How will regulatory bodies assess the merger’s impact on competition in Australian media?
- What specific revenue synergies can the combined group realistically achieve beyond cost savings?
- How will the merged company balance regional and metropolitan audience needs while driving digital growth?