Seven West's Kerry Stokes Announces Departure
Kerry Stokes, billionaire chairman of Seven West Media (ASX: SWM) based in Western Australia, has revealed he is stepping down. This follows the company's agreement earlier this year to merge with Southern Cross Media Group, a deal supported by an independent report from SXL received this week.
Merger Backed by Independent Report
The report, commissioned by Kroll Australia Pty Ltd, concluded that the merger is in the best interests of Southern Cross shareholders. Seven West Media's '7' TV portfolio continues to dominate Australian sports viewership, reinforcing the strategic benefits of the merger.
Market Response and Share Price Activity
Despite the positive outlook, Seven West Media's share price remained static on Thursday. By 1:30pm AEDT, only $7,000 worth of shares had traded intraday, reflecting extremely low liquidity typically seen in very small mining companies.
This lack of market enthusiasm suggests Seven West Media has lost its appeal among investors.
Comparative Performance of Southern Cross Media
- Southern Cross Media (SXL) shares dropped 1.7% intraday to 85 cents.
- Despite this dip, SXL's shares have risen 41% year-to-date.
"SWM just doesn’t have the sex appeal anymore to garner market interest."
Questions remain about Kerry Stokes’ motivations and future plans as he steps away from the company.
Author’s summary: Kerry Stokes’ exit from Seven West Media highlights a shift in investor sentiment, despite the group's strong sports broadcasting presence and a merger poised to benefit shareholders.