Seven West & Fairfax Revisit $2.3 Billion Merger
Seven West Media and Fairfax have reportedly resumed talks for a $2.3 billion merger, following last year’s media law reform.
According to The Australian, Seven West Media Chairman, Kerry Stokes, is waiting for his company’s share price to lift before proceeding further.
The news comes after Fairfax and Nine Entertainment engaged in merger discussions last year. An agreement was not reached, following a dispute over the equity stake each party would have in the merged entity.
Nine Entertainment’s Hugh Marks reportedly wanted Fairfax to own less than 20% of the merged company.
Consensus is, recent merger discussions are progressing further courtesy of last year’s media law reform.
Commentators speculate whether Seven West Media will engage in capital raising, after presumably overpaying for its sporting rights.
Seven West Media is reportedly interested in Fairfax’s 60% stake in online real estate group, Domain, whilst Fairfax has set its sights on Seven’s free-to-air broadcast and print portfolio.