West Australia Newspapers (WAN) has agreed to acquire Seven Media Group in a $4 billion merger as part of a move by Kerry Stokes to consolidate his vast media interests.
The deal will create a media empire spanning TV, pay-TV, magazines and newspapers, and was announced today in a filing on the Australia Securities Exchange. Assets include free-to-air TV network Seven, Pacific Magazines, and 50% of Yahoo!7.
The agreement is Stokes' second major media move in a year following the $5 billion merger of Seven Group and earthmoving company Westrac in April.
Stokes is to remain chairman of the newly created company, which is expected to retain part of the Seven name, and executive chairman of Seven Group. Stokes also owns a 24% stake in WAN.
Seven Group chief executive David Leckie is to become chief executive of the merged company, ending market speculation about Leckie's future at the media owner.
WAN said it would conduct capital raisings as part of the deal, expected to be close to $700 million. The deal is dependent on shareholder approval and other conditions.
The move comes hot on the heels of regional media player Southern Cross Media's $741 million takeover of Austereo, suggesting the Australian media industry is about to enter a major period of consolidation.
One of Seven's main rivals, Nine Entertainment Co, which rebranded from PBL Media last year, is eyeing up a sharemarket listing in the second half of the year.
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