Southern Cross to Own 50.1% After ACCC Clears Seven West Media Acquisition

ACCC’s Competition Assessment

The Australian Competition and Consumer Commission (ACCC) has given a green light to Southern Cross Media’s proposed acquisition of Seven West Media, concluding that the deal is unlikely to substantially lessen competition in Australia’s media markets. This decision follows a thorough investigation into how the two companies compete across advertising, content supply, and content acquisition.

Southern Cross Media, a powerhouse in radio broadcasting with over 100 stations and a growing digital audio presence, operates largely in a different sphere than Seven West Media, which owns the Seven Network free-to-air TV broadcaster and a suite of print newspapers in Western Australia. The ACCC found that these companies attract different advertisers and audiences, reducing concerns about direct competition.

Local Market Dynamics and Advertising Competition

Particular attention was paid to regional Western Australia, where both companies are prominent traditional media outlets. The ACCC noted that Southern Cross and Seven do not compete closely for local advertising dollars, with local businesses and media agencies continuing to have diverse options, including online and social media platforms with geo-targeting capabilities. This diversity in advertising channels further mitigates the risk of reduced competition post-merger.

Broader Industry Trends Influence Decision

The ACCC’s decision also reflects the broader transformation of Australian media markets. The rise of streaming services and the surge in online advertising have reshaped how consumers access content and how advertisers allocate budgets. Traditional media platforms, including radio, television, and newspapers, face increasing competition from digital channels, a factor that the ACCC highlighted as crucial in its assessment.

As ACCC Deputy Chair Mick Keogh remarked, the shift towards digital media means that even a combined Southern Cross and Seven entity will continue to face strong competition, ensuring that consumers and advertisers benefit from a competitive environment.

Next Steps and Regulatory Hurdles

While the ACCC’s clearance removes a significant regulatory barrier, the acquisition remains subject to approval by the Australian Communications and Media Authority (ACMA). The ACMA’s evaluation focuses on media plurality and the number of independent voices in the market, a different test from the ACCC’s competition assessment. This means the final outcome will depend on how the combined entity fits within Australia’s broadcasting regulations.

Under the proposed deal, Southern Cross shareholders will hold a slight majority with 50.1% ownership, while Seven West Media shareholders will retain 49.9%. This merger could reshape the Australian media landscape, combining Southern Cross’s radio and digital strengths with Seven’s television and print assets.