Seven West's Kerry Stokes Announces Departure
Kerry Stokes, the billionaire chairman of Seven West Media (ASX: SWM) based in Western Australia, has declared he is stepping down. Earlier this year, Stokes agreed to a merger between Seven West Media and Southern Cross Media Group, supported by an independent report from Southern Cross (SXL).
Merger Report and Market Reaction
The report, commissioned from Kroll Australia Pty Ltd, confirmed the merger deal serves the best interests of Southern Cross shareholders. With Seven West Media’s “7” TV portfolio continuing to dominate Australian sports for the coming year, this conclusion appeared expected.
However, the market’s reaction was muted. Despite the news, Seven West Media’s share price did not move on Thursday. As of 1:30 pm AEDT, only $7,000 worth of shares had changed hands—reflecting very low liquidity comparable to that seen in small exploration mining stocks.
Investor Sentiment and Market Interest
This lack of trade volume suggests Seven West Media no longer attracts strong market interest or “sex appeal.” Meanwhile, Southern Cross Media (SXL) shares fell 1.7% intraday to 85 cents but have risen 41% year to date.
“SWM just doesn’t have the sex appeal anymore to garner market interest.”
Looking Ahead
Given these developments, investors may question Kerry Stokes’s motivations behind his decision to exit the company.
Author's summary: Despite the merger and sports dominance, Seven West Media’s market activity is weak, with Kerry Stokes stepping down amid fading investor enthusiasm.