Seven West Media and Southern Cross Media have agreed to merge, in a deal that would create one of Australia’s largest integrated media companies.
The scheme of arrangement, announced this morning, will combine the businesses’ free-to-air TV, audio, streaming, digital and publishing assets – bringing together metro and regional reach under one umbrella.
A new scale play
The combined group will target the core 25–54 demographic, offering what both sides are calling a “one stop shop” for advertisers.
The merger will see SWM shareholders receive 0.1552 SCA shares for each SWM share, resulting in a near-even ownership split – 49.9% to SWM investors and 50.1% to SCA shareholders. Both boards have signed off, with Kerry Stokes AC confirming SWM’s unanimous support.
“The combination of these two companies brings together the best creators of media content in the country, delivering significant financial and strategic benefits for SWM shareholders,” Stokes said.
“This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers.”
Leadership and synergies
Under the proposed structure, SWM CEO Jeff Howard will lead the combined group, while SCA’s John Kelly becomes Group Managing Director, Audio.
Stokes will chair the board until 2026 before handing over to SCA’s Heith Mackay-Cruise.
Management is targeting $25–30 million in annual pre-tax cost synergies within two years, pointing to reduced duplication across corporate overheads, facilities and operations.
Revenue synergies are also expected, though still being quantified.
“By bringing together the complementary assets and brands of SWM and SCA, we are creating a truly national, diversified media organisation with extensive scale and reach,” said Howard.
Mackay-Cruise added: “This merger will create one of Australia’s leading Total TV, Audio and Digital platforms, with the scale, reach and diversification to better serve Australian audiences and communities.”
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