Kerry Stokes, the billionaire chairman of Seven West Media based in Western Australia, has revealed he is stepping down. Earlier this year, he agreed to a merger with Southern Cross Media Group, supported by an independent report from SXL obtained this week.
The report, conducted by Kroll Australia Pty Ltd, concluded that the merger is in the best interest of Southern Cross shareholders. With Seven West Media’s “7” TV portfolio poised to maintain dominance in the Australian sports market this year, the conclusion seems clear.
However, despite the positive outlook, Seven West Media's share price did not react on Thursday. By 1:30pm AEDT, only $7,000 worth of shares traded—an extremely low liquidity level more typical of small exploration mining stocks.
This suggests the company no longer attracts strong market interest.
"SWM just doesn’t have the sex appeal anymore to garner market interest."
"One must wonder what Kerry Stokes is really thinking when he announces his departure."
These developments leave questions about the company's future momentum under new leadership.
Author’s summary: Kerry Stokes’ resignation amid Seven West Media’s merger signals a crucial shift, but the market’s muted response highlights waning investor enthusiasm despite strong sports dominance.