Seven West's Kerry Stokes Steps Down as Chairman
Seven West Media's billionaire chairman Kerry Stokes, based in Western Australia, has announced his decision to step down. The announcement follows the company's recent agreement to merge with Southern Cross Media Group, a deal supported by an independent report earlier this week.
Details of the Merger
The merger between Seven West Media (ASX:SWM) and Southern Cross Media Group (ASX:SXL) was assessed by Kroll Australia Pty Ltd. The report concluded that the deal serves the best interests of Southern Cross shareholders.
“The merger deal is in the best interests of Southern Cross shareholders.”
Market Reaction
Despite the merger and Seven’s continuing dominance in televised sports, investors appeared unmoved. On Thursday, SWM shares traded with extremely low volume—only about $7,000 worth of shares had exchanged hands by early afternoon. This lack of liquidity resembles that of smaller mining exploration companies.
The muted reaction suggests that the stock no longer excites market participants as it once did. Meanwhile, SXL shares fell 1.7% intraday to 85 cents but remain up 41% year-to-date, reflecting a far stronger performance overall.
Reflections on Leadership
With his departure, questions arise about Stokes’ perspective on the company’s trajectory and the broader media landscape. His exit, coming at a time of strategic transition, adds another layer of uncertainty for investors.
Author’s summary: Kerry Stokes’ exit from Seven West Media symbolizes a turning point—despite strong sports viewership, investor passion for the stock continues to fade.