Seven West's Kerry Stokes Steps Down as Market Stays Unmoved
Seven West Media’s billionaire chairman, Kerry Stokes, based in Western Australia, has announced his resignation. This move follows the company’s recent agreement to merge with Southern Cross Media Group, a deal supported by an independent report released earlier this week.
Merger Evaluation and Market Reaction
The independent report, prepared by Kroll Australia Pty Ltd, concluded that the merger serves the best interests of Southern Cross shareholders. With Seven West Media’s “7” network maintaining its strong grip on Australian sports broadcasting, this outcome was broadly expected.
However, despite this strategic progress, the market did not react. By 1:30 PM AEDT on Thursday, only $7,000 worth of SWM shares had been traded, reflecting unusually low liquidity — levels more typical of small resource explorers than major media firms.
Investor Sentiment and Sector Comparison
This muted market response suggests a deeper concern: investors may be losing interest in SWM’s stock despite its strong media assets. Meanwhile, shares of Southern Cross Media (SXL) slipped 1.7% intraday to 85 cents but remain up 41% year-to-date, showing far better momentum.
“SWM just doesn’t have the sex appeal anymore to garner market interest.”
Perspective on Stokes’ Departure
As Stokes exits, observers are left wondering what prompted his decision at this moment, especially with the merger advancing and the company consolidating its dominance in sports broadcasting.
Author’s summary: Kerry Stokes’ surprise resignation from Seven West Media comes as the firm leads in sports coverage but faces weakening investor confidence, reflected in almost static share performance.