SCA merger an unorthodox lifeline for sinking Seven

Seven Western media accepted Combine with Southern Cross AustereoIn addition to Triple M network, Listnr (Hamish and Andy, Abbie Chatfield’s likes Too muchAnd Briefing).

According to an investor package, the agreement that will result in a combined group with market value 417 million dollarsHe caught many media reporters with some surprise, with nine entertainment considered A serious suitor for SCA.

To do this, nine would have to complete the sale. Radio assetsIn a significant time in the chopping block. In any case, Calum Jaspan Age And Sydney Morning Herald (Mastheads of nine entertainment) reported During the weekend, the agreement with seven is not binding as it stops, and it quits the possibility of competitors.

The agreement functions as a life line for the seven sinking – and may not even be so useful. The finance of the Seven Western Media, Crirase He has reported before, categorically terrible. More than one quarter of the company’s all operating expenses are spent for an AFL rights agreement, which has contributed to 170 million dollars per year, and is locked until 2031, although a improved ESEK (interest, tax, depreciation and depreciation) position has not seen a improved ESEK (interest, tax, depreciation).

Industry internal and high -level resources with the knowledge of the financing of Seven earlier this year, the seven West’s own football rights agreement will not survive financially, but in the 2000s in the 2000s, he argued that he trusted his audience for 10 -similar enigma.

“The only thing that is worse than winning for seven [the football rights] He’s losing them, ”Media writer Tim Burrowes Crirase In July.

Seven financing defined As a former manager this week, debt and income as the “Cards House”. The idea of ​​buying private capital, CriraseWith the acceptance of long -term chair and media that Don Kerry Stokes will be proud to think in such a way choiceNot to say anything from the attractiveness (or lack of the seven for a potential buyer. The price of the seven decreases 72% in 2022, when the company announced that the company’s current AFL rights agreement was extended during writing and that it was a longer more than $ 15 in 2007. It serves as an unit an unusual option for a merger with SCA, a merger.

SCA’s last year report Ebitda paints a picture of a company where it fell 24.3% in the previous year and the income is marginalized. In February, SCA reduced 8% of the labor force in a series of business deductions and the annual report speaks with “more meaningful and lasting cost discounts for 25 MY25”. Investor PACKAGING In the merger proposal, he spoke of “cost synergies for $ 25-30 million, but seven people did not answer questions about whether more business deductions or dismissal or from which areas of dismissal.

In any case, any snow that can be removed from a weak SCA after the merger will be a relative minor change for a seven -sized business. While SCA generated $ 499.4 million in the 24 financial year, the seven West had $ 1.41 billion. In the same financial year, SCA had a EBITDA of $ 55.5 million, which is below one third of the seven West. Both are significantly exposed to the advertising market decline of Seven’s earnings tank. Neither seven nor SCA can be a step in the right direction due to the targeted nature of the Podcast assets, Podcast assets, Podcast and sound advertisements, but unlike its rivals Nine and News Corp, it does not have important subscription media products that isolated them from the changing winds of Adland. In any case, they are two very different companies in terms of scale.

Therefore, Stokes and CO felt the authority to enter the top of SCA shareholders and to dilute them up to 49.9%with a movement. evacuated By Joe Aston Financial review At the weekend, as a cynical person who resembles a pair of trees laziness cutting his back ”.

Aston describes the merger rate as naked naked to deprive the southern Cross shareholders without voting ”on the merger, which will give a 20% share of the Stoke Family. Seven Group Holding will have a 40%more. Despite this control on the seven sides of the agreement, West, who loves Southern Cross shareholders, undertakes a net debt of $ 290 million and does not take the floor as to whether the merger continues.

And when it comes to the new board? Ryan, the son of Stokes, will remain on the board of directors after his father’s departure in February 2026 and apparently eliminate a perception that the family business attaches less importance to the media side ( Seven groups) interview with your family Western Australia newspaper At the weekend, to say that the media side of the business “is an important part [his] life”.

In doing so, Stokes mentioned the importance of ürmek being an editor or publisher, but not being framed by reporting ”, instead of“ honest and accountable reporting ”, instead of“ mass manipulation ”. Of course, Crirase Previously, instead of choosing to submit to the decision of the peers of seven people, he had reported that he had their own mechanisms for accountability: seven -press councils in favor of their own “Independent Media Council üs consisting of 29 members of the Seven Western Media. Then there is no place to go, if you have a problem with the responsible signs reporting Like the new PDF newspaper of the seven Night On the front page, Auschwitz’s doors call on a remarkable draft UN resolution.