Seven West Media’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. This announcement follows an agreement earlier this year for a merger with Southern Cross Media Group, supported by an independent report commissioned from Kroll Australia Pty Ltd.
Merger Report and Market Reaction
The Kroll report concluded that the merger is in the best interest of Southern Cross shareholders. Seven West Media’s ‘7’ TV network continues to dominate the Australian sports broadcasting landscape for the upcoming year, making the deal appear strategically sound.
Share Price and Liquidity Concerns
Despite these developments, SWM’s share price remained largely unchanged on Thursday. Trading volume was extremely low, with only $7,000 worth of shares exchanging hands by 1:30 PM AEDT, resembling liquidity levels typical of small exploration mining stocks.
This suggests that Seven West Media no longer attracts significant market interest or "sex appeal."
Comparative Performance
In comparison, Southern Cross Media Group’s shares declined by 1.7% during the day to 85 cents but have gained over 41% year-to-date.
Investor Uncertainty
Stokes’ departure raises questions about his future perspective and the company’s direction amid these market signals.
“One then must also wonder what Kerry Stokes is really thinking when he announces his departure.”
Author's summary: Kerry Stokes’ exit from Seven West Media highlights shifting investor sentiment despite the company’s strong sports broadcasting position and a merger that appears favorable on paper.