Seven West's Kerry Stokes Steps Down Despite TV Sports Dominance
Kerry Stokes, the billionaire chairman of Seven West Media (ASX: SWM) and based in Western Australia, has announced his departure. Earlier this year, Stokes agreed to a merger between Seven West Media and Southern Cross Media Group, supported by an independent report sourced from SXL.
The report, prepared by Kroll Australia Pty Ltd, confirmed that the merger is in the best interests of Southern Cross shareholders. Seven West Media’s “7” TV portfolio continues to lead the Australian sports broadcasting scene for the upcoming year, making the conclusion expected.
Despite these positive business developments, the market reaction to the news was muted. On Thursday, Seven West Media’s share price remained unchanged, with only $7,000 worth of shares traded by 1:30 pm AEDT. This level of inactivity is typical of very small, low-interest stocks rather than one of this profile.
In contrast, Southern Cross Media Group’s shares (SXL) dropped 1.7% intraday to 85 cents but have shown strong performance overall, with a 41% gain year-to-date.
"SWM just doesn’t have the sex appeal anymore to garner market interest."
Investors and observers are left to speculate about Kerry Stokes' motivations behind his exit announcement amid these market signals.
Summary
Kerry Stokes’ exit from Seven West Media follows a merger agreement amidst continued sports broadcasting strength, though investor enthusiasm appears minimal as share activity remains low.