Southern Cross and Seven West to Merge in $2 Billion Deal

Executives say the merger will accelerate digital expansion, with platforms expected to deliver 12 percent of FY25 revenues and stronger long-term growth.

Pedestrians walk past signage of the Seven Television Network in central Sydney on Feb. 21, 2011. Greg Wood/AFP via Getty Images

Major media groups Southern Cross Media Group (SCA) and Seven West Media (SWM) will merge to form a new entity spanning television, audio, digital, and publishing.

Executives say the combined group will dominate the key 25–54 demographic across both metropolitan and regional markets. They argue it will provide a one-stop shop for advertisers and a stronger platform for audiences.

“This merger will create a leading integrated Total TV, Audio and Digital platform, with the scale, reach and diversification to better serve Australian advertisers, audiences and communities,” said SCA Chairman Heith Mackay-Cruise told the ASX in a statement on Sept. 30.

SCA Chief Executive John Kelly said digital growth was a key driver.

“We are particularly excited about the potential of the combined company’s digital platforms and capabilities, which will generate approximately 12 percent of FY25 revenues and have compelling future growth opportunities,” he said.

SWM Chairman Kerry Stokes AC said the deal would unite “the best creators of media content in the country” and deliver “significant financial and strategic benefits for SWM shareholders.”

SWM CEO Jeff Howard added it marked “a pivotal moment for Australian media.”

The merger reflects a wider consolidation trend in the sector, with media companies seeking scale to compete against global streaming giants and digital platforms like Google and Meta.

By pooling television, radio, and digital assets, the new group aims to offer both traditional reach and data-driven targeting.

Merger Terms and Shareholder Support

The deal will proceed via a scheme of arrangement.

SWM shareholders will receive 0.1552 SCA shares for each SWM share. SCA shareholders will own 50.1 percent of the combined group and SWM shareholders 49.9 per cent.

Management expects annual pre-tax cost savings of $25–30 million, with additional revenue opportunities. The merger is also forecast to more than double earnings per share for SCA investors by FY26.

The SWM board has unanimously backed the plan and directors have pledged to vote in favour. Seven Group Holdings, which owns 40.2 percent of SWM, has also signalled support.

The merger remains subject to several conditions, including regulatory approval from the ACCC, ACMA, and ASX.

It will also require approval by SWM shareholders under the Corporations Act, as well as court sign-off. Independent experts must confirm the deal is in the best interests of both companies’ shareholders, and lenders must provide change-of-control consents.