Seven West's Kerry Stokes Announces Departure
Kerry Stokes, billionaire chairman of Seven West Media (ASX: SWM) based in Western Australia, has declared his exit from the company. Earlier this year, Seven West Media agreed to merge with Southern Cross Media Group, supported by an independent report from SXL.
Merger Analysis and Market Reaction
The report, prepared by Kroll Australia Pty Ltd, confirmed that the merger is beneficial for Southern Cross shareholders. Seven West Media’s ‘7’ TV portfolio is expected to maintain its dominance in the Australian sports scene for the coming year.
Market Response
Despite these developments, Seven West Media's share price remained largely unchanged on Thursday. By 1:30 PM AEDT, only $7,000 worth of shares had traded, a level of inactivity more typical of very small-cap exploration mining stocks.
This suggests the company has lost its appeal among investors.
“SWM just doesn’t have the sex appeal anymore to garner market interest.”
Southern Cross Media Group's Performance
- SXL shares dropped 1.7% intraday to 85 cents.
- Year-to-date, SXL is up 41%, outperforming SWM.
Investor Concerns
Kerry Stokes' departure raises questions about his perspective on the company’s future amid these market conditions.
Author's Summary
Kerry Stokes' exit from Seven West Media highlights challenges in investor confidence despite a strong media portfolio and merger prospects.