Seven West Media’s Kerry Stokes Steps Down
Kerry Stokes, billionaire chairman of Seven West Media (ASX:SWM) based in Western Australia, has announced his departure. Earlier this year, Stokes agreed to a merger with Southern Cross Media Group, a move supported by an independent report commissioned from Kroll Australia Pty Ltd.
Merger Deal Endorsed by Independent Report
The Kroll report confirmed that the proposed merger benefits Southern Cross shareholders. Seven West Media's ‘7’ TV portfolio remains dominant in Australian sports broadcasting for the coming year, highlighting the strategic value of the merger.
Market Reaction and Share Price Activity
Despite this, SWM’s share price showed no significant movement on Thursday. By 1:30pm AEDT, only $7,000 worth of shares had changed hands—indicating extremely low trading liquidity comparable to that found in small, speculative mining stocks.
“SWM just doesn’t have the sex appeal anymore to garner market interest.”
In contrast, Southern Cross Media Group’s stock (SXL) dropped 1.7% intraday to 85 cents but has performed strongly overall this year, up 41% year-to-date.
Investor Concerns and Future Outlook
The lack of market enthusiasm raises questions about investors' confidence and Kerry Stokes’ mindset as he prepares to leave the company after years of influence.
Summary
Kerry Stokes’ exit from Seven West Media follows a merger deal with Southern Cross, but muted market response highlights waning investor interest despite strong sports broadcasting dominance.