Australia’s Seven West Media and Southern Cross Media have agreed to merge, creating a combined company valued at A$417 million (US$274 million) as they seek greater scale to compete with global streaming giants, Reuters reported.
The deal will unite Southern Cross’s extensive radio and podcast assets with Seven West’s metropolitan and regional television licences, consolidating two of the country’s largest traditional media players. Southern Cross shareholders will hold 50.1% of the merged entity, while Seven West investors will own 49.9%.
Kerry Stokes’ Seven Group, which controls about 40% of Seven West, will play a central role in the deal. The new company will be led by Seven West’s current CEO, Jeff Howard.
Executives said the merger could deliver annual pre-tax cost savings of A$25-30 million within two years, driven by operational efficiencies and the integration of broadcast and audio businesses.
Not all investors are convinced. Gabriel Radzyminski of Sandon Capital, which owns over 11% of Southern Cross, criticized the deal as diluting Southern Cross’s focus on audio. Sandon is already campaigning to remove the company’s board at its upcoming annual meeting.
In addition, the merger is pitched as a defensive move against streaming platforms such as Netflix, Disney, and Paramount Skydance, which continue to erode advertising revenue for free-to-air broadcasters. Southern Cross CEO John Kelly described consolidation as ‘essential’ to counter global competition and ‘take the fight back to the streaming behemoths.’
The transaction still requires shareholder approval and clearance from regulators including the competition authority and the Australian Securities Exchange. A shareholder vote is expected in early 2026.