UPDATE: Shareholders of Seven West Media have just approved a monumental merger with Southern Cross Media Group, voting in favor of the deal with an astounding 98 percent majority. This pivotal decision, confirmed during a shareholder meeting today, marks a significant shift in the Australian media landscape as the companies unite to combat the pressures from streaming giants like Netflix.
The $385 million merger is set to proceed to the New South Wales Supreme Court for approval on Tuesday, and it will officially take effect on January 7. This overwhelming support from shareholders underscores a collective confidence in the future of the combined entity, which will also leverage Southern Cross’s popular LiSTNR podcast platform to enhance financial stability.
During the meeting, Kerry Stokes, chairman of Seven, expressed optimism about the future. His son, Ryan Stokes, who oversees day-to-day operations, remarked, “It’s a somewhat momentous day in Seven’s history – the conclusion of one chapter and the exciting stage of another.” This sentiment reflects the company’s strategic vision for growth in a rapidly evolving media environment.
The merger will see shareholders of both companies owning approximately 50 percent of the newly formed media powerhouse. Until a new name is announced next year, the business will operate under the Southern Cross Media banner and will trade on the stock exchange under the SXL ticker.
In a notable leadership change, Jeff Howard, the current CEO of Seven, has been appointed as the new CEO of the combined entity. Meanwhile, Kerry Stokes is scheduled to step down as chairman on February 26, with Heith Mackay-Cruise of Southern Cross taking over the role. Ryan Stokes will maintain a presence on the board, representing the Stokes family’s interests in the new media conglomerate.
The merger is seen as a strategic move to enhance the media group’s competitive edge in both traditional broadcasting and the burgeoning podcasting sector. This shift comes at a crucial time when conventional television networks face increasing challenges from digital streaming services.
As this major merger unfolds, media analysts and industry insiders will be closely monitoring the developments. With such a decisive shareholder backing, the expectation is that this merger will reshape the media landscape in Australia for years to come.
Stay tuned for more updates as the situation develops.
