👉 Background: Seven West Media, owner of Channel 7, The West Australian, 7plus and the broadcast rights to the AFL and cricket, is one of Australia’s biggest free-to-air networks. Southern Cross Media is behind the Hit Network and Triple M.

👉 What happened: Over the past 12 months, Southern Cross has been looking for a buyer... even holding serious talks with rival ARN Media. But after those negotiations fell over, Seven West Media announced plans to merge with Southern Cross Media, creating a combined company valued at $415 million.

👉 What else: As part of the deal, Seven shareholders will own 49.9% of the merged business, while Southern Cross shareholders will hold 50.1%. The move reflects how both companies are adapting to the challenges of the changing media landscape.

What's the key learning?

💡Media firms are being forced to consolidate to protect their margins and their relevance. With viewers now scattered across streaming platforms, social media, podcasts and traditional TV/radio, the old ad-driven model isn’t working like it used to.

💡Ad spend has collapsed, leaving broadcasters struggling. Between 2006 and 2022, commercial broadcasters' share of Australia’s ad market fell from 43% to 17%. And it keeps sliding, making revenue even harder to secure.

💡By merging, Seven West and Southern Cross can bundle their offerings and sell it as one juicy advertising package to advertisers. This added scale also gives advertisers richer audience insights, while offering Seven West a much-needed boost after profits plunged 62% in 2025.