Seven West, Southern Cross Media Shares Surge Following Merger Announcement

The Australian media world is stirring. Southern Cross Media and Seven West Media just announced a proposed merger. Shares of both firms jumped sharply the same day. Investors see this as a major play in a tough market. We are witnessing not just a business deal. It could reshape the media scene across TV, radio, digital, and publishing. Southern Cross Media is strong in radio and podcasts. Seven West dominates television and regional news. Together, they aim to build scale and compete with global streaming giants.

We will explore what’s behind this merger, how the market reacted, and why Southern Cross Media may emerge as a powerful force in the new landscape.

Background of Southern Cross Media

Southern Cross Media (often referred to as SCA) is a major player in Australia’s audio and radio market. Its brands include Hit Network, Triple M, and the LiSTNR digital audio and podcast platform. Over time, Southern Cross has invested heavily in audio and exited television in many markets. Before this merger move, Southern Cross had sold or transferred its regional TV licences. In 2025, Seven West Media bought many of those remaining TV assets for about A$3.75 million.

Southern Cross aims to be a leader in audio and digital content. It sees growth in podcasts, streaming audio, and radio ad revenue. But alone, it lacks reach in free-to-air television, which this merger would remedy.

Background of Seven West Media

Seven West Media (SWM) is better known for television, newspapers, and digital news. It owns the Seven Network, which airs many top TV shows and holds major sports broadcasting rights.  It also owns The West Australian newspaper and operates The Nightly, an online news service.

In recent years, Seven West has faced pressure. TV advertising revenues dropped. Streaming services drew away audiences. The company has looked for ways to stabilize and grow. That is part of what motivated SWM to consider combining with a strong audio and digital partner.

Details of the Merger

On 30 September 2025, Seven West and Southern Cross announced they had signed a Scheme Implementation Deed to merge their businesses. Under the terms, Seven West shareholders will get 0.1552 Southern Cross shares for each SWM share. After the merger, Southern Cross shareholders will own 50.1% of the combined entity, and Seven West shareholders 49.9%. The deal values the merger at about A$417 million.  They expect A$25–30 million in annual cost synergies by combining operations (e.g., shared tech, sales, administration).

Leadership roles are divided. Jeff Howard, current CEO of SWM, will be CEO (Managing Director) of the merged firm. John Kelly, CEO of Southern Cross, will become Group Managing Director for the audio side.

Kerry Stokes, long-time chair of Seven West, will remain chair of the combined company until February 2026. Then, Heith Mackay-Cruise (Southern Cross chair) will take over.

The merger still needs regulatory approvals (e.g., from ACMA, ACCC) and ratification by shareholders.

Stock Market Reaction

The market reacted quickly. On announcement day, Seven West shares jumped ~14.3%, while Southern Cross stock rose ~10.75%.  Before the announcement, Seven West shares were trading around A$0.14. The merger terms offered a slight discount to that.  Investors seem to believe that combining assets will unlock value. Some analysts noted that scale matters when battling streaming platforms like Netflix or Disney.

Still, there is risk. Some Southern Cross investors have criticized the deal as “diworsification”,  the idea that the merger stretches the company too thin into new areas. In the short term, shareholders of both firms stand to benefit from gains triggered by investor optimism. Over the long term, performance depends on integration and execution.

Strategic Implications for Southern Cross Media

This merger gives Southern Cross a presence in free-to-air television and regional news markets. It fills a gap in its portfolio.

We expect these benefits:

• Cross-platform reach: Combine TV audiences with radio/podcast users.
• Better ad packages: Sell bundles across TV, audio, and digital.
• Cost efficiencies: Shared tech, operations, and content are cheaper when scaled.
• Diversified revenue: Reduce reliance on audio alone, tap into TV ad and subscription/digital revenue.

But risks will arise:

• Integration challenges: Merging teams, culture, and systems is hard.
• Regulatory pushback: Media ownership concentration is a political concern in Australia.
• Audience overlap: Some duplication must be managed carefully.
• Execution risk: Promised synergies may take more time or prove less than expected.

For Southern Cross Media, this is a bold leap forward. But success depends on how well the combined group operates.

Broader Media Industry Impact

This deal is likely to accelerate consolidation in Australian media. Smaller players may seek mergers or alliances to survive. Advertising markets will shift. Advertisers will demand packages that cover both TV and audio/digital. The new company will be better placed to compete for big ad budgets. Streaming and global platforms like Netflix, Amazon, and Disney are key rivals. Only media groups with scale can fight back.  Other media firms may respond. For example, Nine Entertainment has been eyeing Southern Cross in recent takeover speculation.  Also, media diversity is a public concern. Critics worry that reducing the number of independent media voices weakens public discourse. Regulators will watch this merger closely.

If the combined firm succeeds, it may force others to adapt or partner. We could see more bundling of media, content sharing, and stronger digital plays.

Conclusion

The proposed merger between Seven West Media and Southern Cross Media shook the market, and for good reason. It brings together TV, radio, digital, and publishing under one roof. Southern Cross Media stands to gain the most: it suddenly gains entry into free-to-air TV and regional news, something it had exited. With shared resources, it may wield more influence in advertising and content creation. Yet challenges lie ahead. Regulators, culture clashes, and execution risk could derail some of the promises.

We are entering a new chapter in Australian media. For investors, media professionals, and audiences, this merger is a pivotal moment. We will watch closely whether this bet pays off,  or whether the industry reshapes again around new alliances and disruption.

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This content is for informational purposes only and is not financial advice. Always conduct your research.