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- Kerry Stokes to stand down under bombshell merger
- READ MORE: Seven reporter stood down over mental health amid class action
By NICHOLAS WILSON, NEWS REPORTER, AUSTRALIA
Published: | Updated:
Billionaire media mogul Kerry Stokes will resign as chair of Seven West Media after the company unveiled plans to merge with Southern Cross Media.
The proposed merger, announced on Tuesday, would create a media group with a valuation nearly of half a billion dollars, with operations across television, radio and publishing.
Under the deal, Stokes would step down as chair of Seven West Media, which controls the Channel Seven television network and The West Australian.
Southern Cross owns Triple M, the Hit Network and the Listnr app. It is currently valued at $202m to Seven West’s $215m.
Seven’s current boss Jeff Howard will run the combined group with Southern Cross chief executive John Kelly to head its audio operations.
Stokes will chair the board of the combined group until February next year, when the current chair of Southern Cross Radio, Heith Mackay-Cruise will take over.
The announcement sent shockwaves through the Australian media landscape, combining Seven’s print and television power with Southern Cross’ radio presence.
Boards of both companies have thrown their support behind the move but it will require regulatory and shareholder approval.
Kerry Stokes (pictured) will stand down as chair of Seven West Media under a planned merger
Seven’s chief executive Jeff Howard (pictured) will be plucked to run the combined group
Stokes, who is Seven’s biggest investor, spruiked the deal as a way to reach new audiences and secure value for shareholders.
‘This is an important merger, as the combined company will be better able to serve both metropolitan and regional viewers, listeners, partners and advertisers,’ he said in a statement.
‘It will add strength to each of the combined businesses’ television, audio, digital and publishing operations across the country.’
It comes amid a troubling time for Seven West with declining TV advertising revenues contributing to a 63 per cent drop in profits for the 2025 financial year.
Stokes’ 40 per cent stake in Seven West Media will be diluted to 20 per cent of the combined group’s value.
He placed tenth on the Australian Financial Review’s 2025 Rich List, with an estimated net worth of $12.69billion, up 12 per cent from the year prior.
Southern Cross will take a controlling share in the combined group, with 50.1 per cent to Seven’s 49.9 per cent.
Share values for both companies surged following the announcement on Tuesday morning.
Seven West shareholders are expected to vote on the bid in the first quarter of 2026.
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