Seven West Media (SWM) shareholders have overwhelmingly approved a merger with Southern Cross Media Group (SCA), clearing a major hurdle in a $385 million deal designed to bulk up traditional media at a time when scale is fast becoming a survival strategy.
At a brief meeting in Sydney today, 99 per cent of shares cast voted in favour of the transaction.
The deal now heads to the New South Wales Supreme Court for approval on Tuesday and, subject to that sign-off, is expected to take effect on 7 January.
Seven says the result reflects strong investor confidence that a larger, more diversified group can better withstand pressure from global streamers such as Netflix and shifting audience habits.
Ryan Stokes
A bigger business, a broader base
The merger brings together Seven’s national television network and publishing assets with Southern Cross’ radio footprint and fast-growing digital audio arm, including LiSTNR.
While audio and podcasting provide growth optionality, the sharper logic is consolidation: more assets, more reach, and more leverage in a fragmented advertising market.
Seven chairman Kerry Stokes addressed the meeting via video link before handing proceedings to his son and fellow director, Ryan Stokes, who oversaw the vote at Seven’s headquarters.
“It’s a somewhat momentous day in Seven’s history – the conclusion of one chapter and the exciting stage of another,” the younger Stokes told The Nightly after the 14-minute meeting concluded.
“We become a much larger, stronger and better-positioned media company, and that only bodes well for the journey going forward.”
Seven West Media’s Jeff Howard
How the deal shakes out
Although SCA is legally acquiring SWM, the all-scrip transaction leaves shareholders in both companies owning roughly 50 per cent of the combined entity.
Until a new name is settled next year, the business will operate as SCA and trade under the SXL ticker.
Post-merger, the group will control 104 radio stations, a national free-to-air television network, a national digital newspaper and multiple print titles across Western Australia.
Annual revenue is forecast at $1.96 billion, with operating profit of $233 million, according to Seven’s chief executive Jeff Howard, who will take the top job as CEO of the merged company.
Governance changes are also locked in.
The elder Stokes will step down as chairman on 26 February, with Southern Cross chairman Heith Mackay-Cruise set to assume the role.
The Stokes family will retain board representation through Ryan, SGH’s CEO, who will hold 20 per cent of the combined group.
Notably, Southern Cross investors were not required to vote on the transaction.
The court approval now becomes the final procedural step in a deal that materially reshapes Australia’s broadcast and audio landscape.
Main image: Kerry Stokes