Media mogul and billionaire 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 nearly half-billion dollar media group with operations across television, radio and publishing.
Under the deal, Stokes would step down as the chairman 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 move would sent shockwaves through the Australian media landscape and, as such, will be subject to regulatory approval.
Boards of both companies have thrown their support behind the move, but it will also require the support of shareholders.
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.’
Southern Cross will take a controlling share in the combined group, with 50.1 per cent to Seven’s 49.9 per cent.
Stokes’ 40 per cent stake in Seven West Media will be diluted to 20 per cent of the combined groups 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.
Share values for both companies surged following the announcement on Tuesday morning.
More to follow.
