Seven West Media to Merge with Southern Cross: Shareholders to Receive 0.1552 Shares Each

A Defining Moment for Australian Media

On Monday, 22 December 2025, Seven West Media Limited (ASX – SWM) held a pivotal Scheme Meeting where shareholders were invited to vote on a proposed acquisition by Southern Cross Media Group Limited (ASX – SXL). The deal, structured as a Scheme of Arrangement, offers Seven West Media shareholders 0.1552 Southern Cross shares for every Seven share they own, setting the stage for a major consolidation in the Australian media sector.

The meeting, chaired by Seven West Media’s Chairman Kerry Stokes AC, marked a significant step in what could become a defining merger. The combined entity would create a national media powerhouse with extensive reach across free-to-air television, streaming, audio, digital, and publishing assets, leveraging the strengths of both companies’ high-value brands.

Board and Expert Endorsements Signal Confidence

The Seven West Media board unanimously recommended shareholders vote in favor of the Scheme, contingent on no superior proposal emerging and the Independent Expert maintaining a positive assessment. Lonergan Edwards and Associates, the appointed Independent Expert, concluded the Scheme is in the best interests of Seven shareholders, reinforcing the board’s stance.

Notably, the board of SGH Limited, holding a 40.2% stake in Seven West Media, also indicated its intention to support the Scheme, adding weight to the likelihood of shareholder approval. Directors themselves have committed their shares in favor, signaling strong internal confidence in the transaction.

Regulatory Hurdles Cleared, Court Approval Pending

The acquisition has already cleared key regulatory hurdles, receiving approvals from the Australian Competition and Consumer Commission (ACCC) and the Australian Communications and Media Authority (ACMA) in November 2025. These endorsements removed significant uncertainty around competition and media ownership concerns.

However, the Scheme’s implementation remains subject to final shareholder approval at the meeting and subsequent sanction by the Supreme Court of New South Wales, scheduled for 23 December 2025. If these conditions are met, the Scheme is expected to become effective by late December, with implementation slated for early January 2026.

Strategic Implications and Future Outlook

The merger promises to create a diversified media group with enhanced scale and content capabilities, combining Seven West Media’s broadcast and publishing assets with Southern Cross’s complementary platforms. This integration could position the combined group to better compete in a rapidly evolving media environment marked by streaming growth and digital disruption.

Chairman Kerry Stokes has announced he will step down from the board by the end of February 2026, signaling a forthcoming leadership transition as the new entity takes shape. Investors will be watching closely for details on integration plans, cost synergies, and strategic priorities post-merger.