In a landmark decision set to redefine Australia's media industry, the competition watchdog has given its unconditional approval for the merger between Seven West Media and Southern Cross Media Group.
Regulatory Green Light for Media Giant
The Australian Competition and Consumer Commission announced on Wednesday that it would not oppose the proposed acquisition after concluding the deal would be unlikely to substantially lessen competition in the market.
ACCC deputy chair Mick Keogh explained the reasoning behind the decision: "We found that Southern Cross and Seven attract different advertisers and are not close competitors for the supply of advertising opportunities in these regions."
Mr Keogh emphasized that local businesses and media agencies would continue to have multiple advertising options, including online and social media platforms with geo-targeting capabilities.
Creating a Media Powerhouse
The merger will combine Seven West Media's extensive portfolio, which includes:
- The Seven television network
- The West Australian newspaper
- The Nightly publication
- Hit shows like My Kitchen Rules and Home and Away
- Broadcast rights to AFL and cricket
With Southern Cross Media's substantial radio assets, the combined entity will control 99 stations broadcasting on FM and AM bands, plus digital radio services including Triple M, the Hit Network and the LiSTNR on-demand service.
Southern Cross currently operates 104 FM, AM and digital commercial radio stations and holds 88 radio licences across Australia. The company has demonstrated strong performance with a metro radio share of 29.8% for the first quarter of the current financial year, representing a 1.8 point increase from the previous year.
Industry Transformation and Leadership Changes
The ACCC's investigation noted that the two companies operate in complementary rather than competing spaces. "Southern Cross is primarily focused on radio and audio entertainment, while Seven is focused on print news and general TV," Mr Keogh stated.
The watchdog also considered broader industry trends, including the rise of streaming services and significant growth in online advertising. "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 added.
The ownership structure will see Southern Cross shareholders emerge with 50.1% of the combined company, while Seven West Media will own the remaining 49.9%. The deal is expected to receive final approval from Seven shareholders in the coming months.
Leadership changes include the appointment of a new board starting in February, with three representatives from each company. SWM chief executive Jeff Howard will become CEO of the combined business.
The merger also marks the retirement of SWM chairman Kerry Stokes, who will remain as a special adviser to the board. Speaking after SWM's annual meeting last week, Mr Stokes expressed confidence in the incoming leadership.
This consolidation represents one of the most significant structural changes in Australian media in recent years, creating a diversified content powerhouse capable of competing in an increasingly digital landscape.
