- Seven West Media’s national reach will surpass 18 million viewers once it merges with Prime Media
- Both broadcasters say joining forces will benefit advertising and will provide better access to regional audiences
- On top of this, the merge will save the businesses $11 million in operational costs
- In other Seven West news, the broadcaster says it’s selling Redwave radio to Southern Cross Media for $28 million
- Seven West’s share price is down nearly one per cent today after falling from an early spike, currently sitting at 38 cents each
Seven West Media has informed the market it is merging with Prime Media in a deal that will boost Seven West’s audience reach to over 18 million.
Seven West’s CEO, James Warburton, said: “Overnight, SWM will be the leading wholly-owned commercial premium network.”
Merging will save the two businesses $11 million in operational costs each year and simplify the process for advertisers, giving a single platform to target metro and regional markets.
Kerry Stokes, Seven West Media’s Chairman, said: “SWM and Prime have had a longstanding relationship and are key partners in the industry. The combined group will cement our position as Australia’s leading content provider and presents excellent value to shareholders.”
A focus will be placed on re-investing in content and furthering expansion in regional areas. Seven West said it will be unlocking revenue potential from regional audiences.
In other Seven West news today, the company announced it is selling its Redwave radio business to Southern Cross Media for $28 million.
Redwave encompasses Red FM, which broadcasts in Broome, Geraldton, Karratha, Port Hedland and greater western regional mine sites. It is also comprised of Spirit AM, which broadcasts with the addition of the Southwest and Bunbury.
James commented that through merging with Prime, and with sale of Redwave, the company will have a “strengthened balance sheet, lower debt level and improved efficiency in the delivery of content across a range of metropolitan and regional platforms.”
Seven West’s share price is down nearly one per cent today after falling from an early spike, currently sitting at 38 cents each.