Billionaire media mogul Kerry Stokes will chair the proposed merged Seven West Media–Southern Cross Media entity before stepping down in February 2026 as part of a landmark $270 million deal.

Under the agreement, Southern Cross Media will gain majority control (50.1%) of the combined group, with Seven West shareholders holding 49.9%.

The deal will dilute the Stokes family’s stake from 40% to about 20%.

Stokes said: “Following the improved performance of Southern Cross Media under Heith Mackay‑Cruise, I have every confidence Heith will continue to guide the combined group successfully. After my retirement from the board, I intend to continue supporting the chair and board wherever I can add value.”

Mackay‑Cruise will take over as chairman after Stokes steps down.

Seven West chief executive Jeff Howard will lead the merged group as CEO, with Southern Cross Media boss John Kelly becoming managing director of audio.

The merger will combine Seven West’s free‑to‑air TV network, streaming platform and publishing assets, including The West Australian, with Southern Cross’s Triple M and Hit radio networks and its LiSTNR digital audio platform.

The companies project $25–30 million in pre‑tax cost synergies, aiming to build a “truly national, diversified media organisation” across television, audio, digital and publishing.

However, the merger has drawn scepticism.

Sandon Capital, a major Southern Cross shareholder, labelled it “diworsification,” arguing it exposes Southern Cross to structurally challenged free‑to‑air television.

The announcement follows a period of strategic moves by both companies.

Seven West has faced declining TV advertising revenues and falling profits, while Southern Cross has sought to expand beyond radio.

The merger would create a $417 million entity with combined annual EBITDA of $230 million, though Southern Cross would inherit Seven West’s $287 million net debt.

Shares in both companies rose sharply on news of the deal, with Seven West up more than 7% and Southern Cross gaining 5%.

The merger will require regulatory and shareholder approval, with a vote expected in early 2026.