Seven merger with Southern Cross moves a step closer
He helped Australia’s competition watchdog Kerry Stokes approach retirement and enabled Southern Cross Media to take over Seven West Media.
While the Australian Competition and Consumer Commission chose not to oppose the media merger, deputy chairman Mick Keogh said the companies were too different to significantly impact advertising or content markets.
Southern Cross is a radio and podcast company run by the Triple M and Hit networks; Mr Stokes’ company runs national broadcaster Seven and newspapers in Western Australia.
“Southern Cross and Seven are not close enough competitors in terms of content,” Mr Keogh said on Thursday.
The watchdog also found that the rise of streaming services and online advertising means the merger would not significantly reduce competition in any market.
“Owners of traditional media platforms such as radio, free-to-air television and newspapers will continue to face strong competition from digital media,” Mr Keogh said.
“Southern Cross will be no exception, even post-acquisition.”
Mr. Stokes announced plans to take over in September and retire in February after chairing the combined board up to that point.
The billionaire recently chaired his last annual general meeting as chairman of Seven West and released a worse set of books, with revenue falling four per cent and profits halving to $30 million.
Seven West was last traded at 13.5 cents per share and had not paid a dividend in eight years.
Under the deal, Seven shareholders will own 49.9 percent of the combined entity and Southern Cross will retain 50.1 percent.
The last remaining hurdle is permission from the Australian Communications and Media Authority.
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