Seven West Media Ltd: Strategic Consolidation Underway
Seven West Media Ltd (ASX: SWM) has confirmed that the Supreme Court of New South Wales has approved a scheme of arrangement that will see the company acquired by Southern Cross Media Group Limited (ASX: SXL). The arrangement, approved on 23 December 2025, follows a shareholder meeting held on 22 December in which more than 99 % of votes cast were in favour of the transaction, with an 88.3 % overall shareholding endorsement.
The scheme represents the culmination of a merger process that has been developing over several weeks. Shareholder approval was achieved after a detailed presentation of the strategic rationale and financial terms of the deal, which aims to create an Australian media conglomerate that spans television, radio, print, and digital platforms. The merger is expected to consolidate Seven West’s television network, magazines, newspapers, radio, and internet services with Southern Cross’s extensive radio portfolio, including Triple M and the Hit Network.
In conjunction with the court approval, SWM has issued a notification regarding the issue of unquoted securities. The notification, disclosed in the ASX announcements on 23 December, outlines the number of unquoted equity securities to be issued or transferred as part of the transaction. While the exact terms of these securities are not yet fully disclosed, the announcement confirms that the issuance is integral to financing the scheme of arrangement.
The deal aligns with broader trends in the Australian media landscape, where consolidation is being pursued to counterbalance the pressures of digital disruption and changing consumer habits. Analysts note that the merger could enhance operational efficiencies and broaden distribution channels for both entities, potentially improving profitability in a market that has seen mixed performance amid inflationary pressures and evolving advertising dynamics.
Financially, Seven West Media has traded at a modest 52‑week low of AUD 0.12 on 17 December and a high of AUD 0.185 earlier in the year, reflecting a volatile but ultimately resilient valuation. With a market capitalization of approximately AUD 192 million and a price‑earnings ratio of 11.57, the company’s shares were trading near AUD 0.125 on 18 December. The transaction is expected to streamline capital structure and unlock shareholder value, with Southern Cross Media bringing a complementary portfolio and a strong foothold in regional broadcasting.
The merger approval also follows a series of media‑sector headlines, including reports of a 99 % shareholder endorsement and commentary on the broader economic context—particularly the juxtaposition of AI‑driven growth in global markets against persistent inflationary concerns in Australia. While the Australian Securities Exchange displayed a cautious tone on the day, the court’s approval of the scheme signals confidence in the strategic fit and financial viability of the combined entity.
In the coming weeks, regulatory reviews will finalize the details of the unquoted securities issuance, and the combined company will commence integration of its operations. Investors and industry observers will be watching closely as the new entity positions itself to navigate a rapidly evolving media environment while capitalizing on synergies across multiple platforms.
