Abstract

Southern Cross Media Group (SCA) and Seven West Media (SWM) have entered into a landmark all-scrip merger to establish a diversified, integrated Australian media platform across Total TV, Audio, and Digital assets. The proposed entity, MergeCo, boasts a pro forma FY25 revenue of $1.777 billion and a combined market capitalisation of approximately $417 million. The transaction is predicated on realising $25-$30 million in annual pre-tax cost synergies. Consolidation is a critical response to digital media globalisation.

This strategic move follows a year where SCA successfully completed its Audio transformation, reporting a 34.4% YoY surge in underlying EBITDA to $71.1 million, underpinned by its LiSTNR digital platform becoming EBITDA-positive. In contrast, SWM’s full-year underlying EBITDA declined 15% to $159 million (FY24: $187 million), but H2 digital revenue growth via 7plus was a robust 41%, signaling a turnaround.