The ACCC has decided not to oppose Southern Cross Media’s proposed acquisition of Seven West Media, finding limited competition concerns amid evolving digital media landscapes.
- ACCC finds Southern Cross and Seven operate in distinct media segments
- No substantial lessening of competition in advertising or content markets
- Digital and online media growth factored into ACCC’s decision
- Acquisition still requires approval from Australian Communications and Media Authority
- Southern Cross shareholders to hold majority stake in combined entity
ACCC’s Competition Review
The Australian Competition and Consumer Commission (ACCC) has announced it will not oppose Southern Cross Media Limited’s proposed acquisition of Seven West Media Limited. The regulator’s decision follows a detailed investigation into the competitive dynamics across advertising markets and media content supply in Australia, particularly focusing on regional Western Australia where both companies have significant presence.
Southern Cross Media operates a broad portfolio of radio stations and digital audio platforms, while Seven West Media’s assets include the Seven Network free-to-air television broadcaster and a range of print newspapers. The ACCC concluded that these companies are not close competitors in either advertising or content markets, given their different media focuses.
Distinct Media Segments and Market Impact
Southern Cross’s strength lies in radio broadcasting and audio entertainment, including over 800 podcasts and live sports coverage, whereas Seven West Media is primarily engaged in television broadcasting and print news publishing. This differentiation was key to the ACCC’s finding that the merger would not substantially lessen competition. The regulator noted that local advertisers in regional areas tend to choose different platforms, reducing direct competitive overlap.
Moreover, the ACCC highlighted the growing influence of digital and online advertising channels, which continue to reshape the media landscape. Streaming services and social media platforms offer advertisers geo-targeted options that further diversify the market, intensifying competition beyond traditional media.
Regulatory and Market Outlook
While the ACCC’s clearance removes a significant regulatory hurdle, the acquisition remains subject to approval by the Australian Communications and Media Authority (ACMA). The ACMA’s assessment focuses on media diversity and plurality, which differs from the ACCC’s competition-based evaluation. This means the final outcome still hinges on broader regulatory considerations around the number of independent media voices in affected markets.
Under the proposed deal, Southern Cross shareholders will hold a 50.1% stake in the combined entity, with Seven West Media shareholders owning the remainder. The merger aims to create a diversified media company positioned to compete effectively in an increasingly digital environment.
As traditional media companies adapt to shifting consumer preferences, this acquisition underscores the ongoing consolidation trend in Australian media, driven by the need to scale and innovate amid digital disruption.
Bottom Line?
The ACCC’s green light clears a major step, but the evolving digital media landscape and ACMA’s review will shape the merger’s ultimate fate.
Questions in the middle?
- How will the combined entity leverage its diverse media assets post-merger?
- What impact will the ACMA’s media diversity assessment have on the acquisition’s approval?
- How might digital advertising growth influence competition among traditional media players?