Media baron appears to be preparing his exit
Seven West punches the attention it draws attention to in the media, but it looks more like acne in the back of Stokes’s wider business and financial empire. For a long time, glorious days for the owners of traditional media assets such as radio, television and broadcasting.
Traditional media assets have been structuring for more than a decade, and advertising revenues are giving up to major digital platforms such as Google and Facebook.
Jeff Howard, the boss of seven West Media, said that the reason behind the agreement was to strengthen the company against the attack of digital giants, while the truth is that this war was carried out and disappeared by traditional media years ago.
Before the agreement was announced, Seven West Media had a little more market value than $ 215 million, and the share price and profit fought. The last result was overshadowed with a circular softness in advertising, which reduces its earnings by 63 percent.
Southern Cross Media, which has its market value in the same basketball court, has managed to have a slight increase in profit and a human mass that still use the radio thanks to digital radio and podcasts.
The explanation for the merger included many of the word buzzing, such as the use of content between the combined platforms, integrated multimedia and scalable advertising solutions. To be fair, similar arguments were installed in 2018 when connected with Fairfax (owner of Masthead).
Ryan Stokes showed interest in the media, but it has a passion for Yedi’s industrial services and building materials such as Boral. Credit: Dominic Lorrimer
However, it is difficult to put any numbers around it, because it is based on the execution skill.
What this merger should be a bank is the cost savings that can be done when the central office and production facilities and of course it lifts the reproduction of products such as personnel. Companies put a figure of $ 25 million to 30 million dollars for these cost synergies.
There is a lot to argue that bringing together two challenging old media companies that only creates a double problem.
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Such a supporter of this view, Gabriel Radzyminski, General Manager of Sandon Capital, who built an important share of 11.3 percent in Southern Cross.
“The combined presence of the process alchemy does not do a growth job,” he argues.
Radzyminski thinks that there is a shocking agreement for Southern Cross shareholders, and is concerned about the commitment of an agreement structure – an arrangement scheme – that will create them without voting for transactions.
The seven Western media shareholders will receive votes and the storage already gives the seal of approval, the rest is almost a formality.
Even before this agreement was announced, the Sandon Capital Southern Cross Media was trying to remove all its rulers. Sandon will not be happy as the merger progresses.
As for Kerry Stokes, the agreement may be the beginning of the end of its place in the labyrinth view of the Australian media.
Market Summary Bulletin is a winding of the trade of the day. Take each onetoKday afternoon.
