Industry sources have told Mediaweek the proposed merger between Seven West Media (SWM) and Southern Cross Austereo (SCA) is far from a closed deal, with speculation Nine Entertainment Co. (NEC) could still step in.
“This deal doesn’t stop Nine from making a play at all,” an insider told Mediaweek. “But they need come in with a cash bid before the transaction is complete.”
SWM and SCA today confirmed they have signed a Scheme Implementation Deed (SID), which sets out the framework for a potential merger.
If completed, the deal would create one of Australia’s largest integrated media companies, spanning free-to-air television, audio, streaming, digital, and publishing.
What the deal involves
Under the proposed scheme of arrangement, SWM and SCA would consolidate their assets, combining metro and regional TV, audio networks, and digital platforms under a single umbrella.
At this stage, the SID does not finalise the merger – it only sets out conditions that must be met before completion. These include:
• Regulatory approvals from the ACCC, ACMA and ASX.
• Shareholder approval, with at least 75% of votes cast and a majority in favour.
• Independent expert sign-off confirming the deal is in shareholders’ best interests.
• Court approval.
• Consent from lenders and ASX approval for the new SCA shares.
Other safeguards, such as no material adverse changes to either business. Until these hurdles are cleared, the merger remains a proposal.
Could Nine trigger a bidding war?
Talk of Nine’s potential interest in SCA has been circulating for months. In August, SCA CEO John Kelly told Mediaweek the company would consider offers “if it was of the right offer for our shareholders and it made sense.”
Nine recently unlocked $3 billion from the sale of its stake in realty site Domain, prompting considerable speculation on where Nine will invest that cash.
If Nine were to make a move on SCA while the merger process with SWM is underway, it could set off a competitive bidding scenario.
Strategic alignment challenges
On paper, SCA’s focus on the 25–54 demographic could complement Nine’s TV and publishing assets. However, there is a sticking point: radio.
Nine’s talk stations, including 2GB and 3AW, skew toward older audiences (55–64s), while SCA’s Hit and Triple M networks, alongside its digital platform LiSTNR, lean into younger cohorts. Any consolidation would require careful consideration of how the combined audio offering fits strategically.
But even before audience strategy is addressed, Nine would face regulatory barriers.
Under the Broadcasting Services Act, no company can hold more than two commercial radio licences in a single market. NEC already controls five talk stations nationally – 2GB (Sydney), 3AW (Melbourne), 4BC (Brisbane) and 6PR (Perth).
SCA, meanwhile, operates 99 stations across metro and regional markets. Folding these into Nine’s portfolio would breach ownership caps in key cities. To comply, Nine would need to divest its talkback assets before any acquisition could be finalised.
What’s next
SWM and SCA shareholders are expected to receive detailed scheme booklets, including independent expert reports, in the coming months. A shareholder vote is likely by Q1 2026, once regulatory approvals are in hand.
Until then, industry eyes remain fixed on whether Nine will enter the contest.