Southern Cross Media Group Ltd: Strategic Shift and Regulatory Developments

In a decisive move to streamline its operations, Southern Cross Media Group Ltd (ASX: SXL) has finalized its exit from the television sector, marking a significant pivot towards its core audio business. On June 30, 2025, the company completed the sale of its remaining television assets to Seven West Media (ASX: SWM), a transaction that underscores Southern Cross Media’s commitment to its “All About Audio” strategy. The assets sold include stations in Tasmania, Spencer Gulf, Broken Hill, Mt Isa, Darwin, and Remote Central and Eastern Australia. This sale, which brought in $3.75 million in upfront cash, contributes to total proceeds from television asset divestments ranging between $19 million and $24 million. These proceeds represent a multiple of approximately 4–5 times FY25 proforma EBITDA, reflecting a strategic realignment towards more profitable ventures.

The completion of this sale positions Seven West Media as the largest regional commercial television broadcaster in Australia, enhancing its footprint across key regions. This acquisition not only strengthens SWM’s market presence but also allows Southern Cross Media to focus resources and strategic efforts on its broadcasting and publishing businesses, particularly in the radio sector and community newspapers in the United States.

In parallel with these strategic shifts, Southern Cross Media has been navigating regulatory developments concerning its shareholding structure. On July 2, 2025, the company announced a variation of orders by the Takeovers Panel regarding ARN Media’s shareholding. The Panel’s decision, in response to a request from entities managed by Sandon Capital Pty Ltd, varied previous orders that restricted ARN Media Limited from voting 6.83% of Southern Cross Media shares, except under limited circumstances. This development is part of ongoing regulatory scrutiny and adjustments aimed at ensuring fair and transparent corporate governance practices.

These strategic and regulatory developments highlight Southern Cross Media Group Ltd’s proactive approach to refining its business model and navigating the complexities of corporate governance. As the company continues to focus on its audio-centric strategy, stakeholders will be keenly observing how these changes impact its financial performance and market positioning in the evolving media landscape.