By David Winning
SYDNEY--Southern Cross Media and Seven West Media said they have agreed to combine, seeking to create an Australian broadcaster with assets spanning free-to-air television and streaming services at a time of heightened competition with overseas rivals.
Shareholders in Southern Cross Media would own around 50.1% of the combined company if the deal, which is structured as a scheme of arrangement, completes. The board of SGH, which owns 40.2% of Seven West Media, has signaled it supports a deal.
Terms of the transaction involve shareholders in Seven West Media receiving 0.1552 shares in Southern Cross Media for each existing share that they own.
"This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers," Seven West Chairman Kerry Stokes said.
The companies expect between 25 million Australian dollars (US$16.4 million) and A$30 million of annual savings before accounting for any pretax costs. These would comprise lower corporate overheads and a rationalization of some facilities.
They also expect small revenue savings through enhancing audience reach and greater scale in advertising.
Jeff Howard will lead the combined group as chief executive, with John Kelly becoming the managing director of the Audio business. Kerry Stokes would become chairman before stepping down in February 2026 and handing over to Heith Mackay-Cruise.
"The combination of Southern Cross Media's and Seven West Media's leading brands on broadcast, audio and digital platforms establishes national leadership across the critical 25-54 'audience that matters' demographic," Mackay-Cruise said.
Seven West owns brands including the Seven Network and affiliate channels such as 7two and 7mate. It also owns The West Australian and The Sunday Times publications. Southern Cross owns radio and digital brands such as Triple M, LiSTNR and Hit.
Write to David Winning at david.winning@wsj.com
(END) Dow Jones Newswires
September 29, 2025 19:07 ET (23:07 GMT)
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