Seven West Media and Southern Cross Media 

(AI video summary)

This video was created on 30 September 2025 for IG audiences by ausbiz.

Sydney’s Seven West Media and Southern Cross Media announce merger

Today's focus is on the merger of Seven West Media (ASX:SWM) and Southern Cross Media (ASX:SXL) to form a unified television (TV), audio, and digital platform. The merger promises annual pre-tax cost synergies between $25 million and $30 million. Southern Cross will hold a 50.1% majority, while Seven West Media will own 49.9%.

Kerry Stokes, chairman of Seven West Media, emphasised the merger's benefit to both metropolitan and regional audiences. Jeff Howard, Managing Director (MD) and Chief Executive Officer (CEO) of Southern Cross Media, will lead the company.

Mixed reactions and regulatory hurdles

The proposal has not satisfied all parties. Sandon Capital, a significant shareholder in Southern Cross, considers the move value-destructive. The merger requires shareholder approval and faces scrutiny by the Australian Competition and Consumer Commission (ACCC) concerning cross-media ownership.

Seven West Media's assets, including free-to-air TV, the West Australian newspaper, and sports content, may face profitability issues against Southern Cross’s stronger earnings.

Investment outlook

Southern Cross Media is known for radio networks like Triple M and Hit Network, along with digital audio services. It is seen as a favourable investment due to its solid balance sheet.

Analysts note the media shift towards digital and streaming services, complicating traditional media operations. Despite potential cost efficiencies from the merger, thin profit margins and market disruptions remain concerns.