Seven West’s Kerry Stokes Steps Down
Kerry Stokes, the billionaire chairman of Seven West Media (ASX: SWM) based in Western Australia, has announced his departure from the company. The news follows his earlier decision to support a merger with Southern Cross Media Group.
Earlier this week, Seven West Media released an independent report from Kroll Australia Pty Ltd, which concluded that the merger is in the best interests of Southern Cross shareholders.
“The merger deal is in the best interests of Southern Cross shareholders.”
Despite the company’s strong sports broadcasting portfolio and ongoing dominance in Australian television, the market reaction was notably indifferent. By 1:30 p.m. AEDT on Thursday, only about $7,000 worth of SWM shares had changed hands, reflecting very low trading activity.
This lack of movement suggests waning investor enthusiasm for SWM. By contrast, Southern Cross Media (SXL) shares slipped 1.7% intraday to 85 cents per share but remain up 41% year-to-date.
Market Reaction and Sentiment
The muted response highlights a growing perception that Seven West Media may be losing its attraction within the market, even as it maintains a strong presence in the sports broadcasting arena.
Author’s Summary
Seven West Media’s chairman Kerry Stokes resigns amid a merger with Southern Cross Media, yet investor apathy exposes the company’s fading market appeal.