Seven West Media's Kerry Stokes Steps Down
Kerry Stokes, billionaire chairman of Seven West Media (ASX:SWM) based in Western Australia, has announced his departure from the company. Earlier this year, Seven West Media agreed to merge with Southern Cross Media Group, supported by an independent report from Kroll Australia Pty Ltd commissioned by Southern Cross (SXL).
Merger Analysis and Market Reaction
The Kroll report concluded that the merger benefits Southern Cross shareholders. With Seven West Media’s ‘7’ TV network continuing to lead the Australian sports broadcasting market for the upcoming year, this outcome was expected.
However, despite these developments, Seven West Media’s share price remained stagnant on Thursday. By 1:30pm AEDT, only $7,000 worth of shares had traded, indicating extremely low liquidity similar to that seen in small mining exploration stocks.
Investor Sentiment and Market Interest
This low trading volume suggests that Seven West Media no longer attracts significant market interest. In comparison, Southern Cross Media’s shares fell by 1.7% intraday to 85 cents, yet have shown strong performance this year, gaining 41% year-to-date.
“SWM just doesn’t have the sex appeal anymore to garner market interest.”
Speculation on Kerry Stokes' Departure
Investors are left to wonder about the reasons behind Kerry Stokes’ decision to leave amidst market indifference to the merger and ongoing sports dominance.
Author's summary: Kerry Stokes' exit from Seven West Media coincides with market disinterest despite the company's strong position in sports broadcasting and an approved merger with Southern Cross Media.