Sydney, Nov 13: The ACCC has confirmed it will not oppose Southern Cross Media Limited’s proposed acquisition of Seven West Media Limited, clearing the way for one of the most significant media deals in recent years.
Seven West Media operates the Seven Network along with a major newspaper portfolio, including The West Australian, The Sunday Times, 11 suburban titles and 19 regional publications across Western Australia. The company does not own radio assets.
Southern Cross Media, meanwhile, is one of Australia’s largest radio operators, with 104 commercial stations under the Triple M and Hit brands and 88 radio licences across metropolitan and regional markets.
It also produces hundreds of podcasts, music stations and live sports content but has no involvement in television or print publishing.
The ACCC’s review assessed whether the two companies compete closely across advertising, media content supply, and content acquisition. Particular attention was given to regional Western Australia, where both businesses are influential providers of traditional media advertising.
“We found that Southern Cross and Seven attract different advertisers and are not close competitors for the supply of advertising opportunities in these regions,” ACCC Deputy Chair Mick Keogh said.
“Local businesses and media agencies seeking to advertise in regional areas will continue to have a range of options in these local markets, including online and social media advertising with geo-targeting capabilities.”
The investigation further considered whether the deal could harm competition in supplying media content to consumers or acquiring content from producers.
“The ACCC’s investigation found that Southern Cross and Seven are not close competitors for content. Southern Cross is primarily focused on radio and audio entertainment, while Seven is focused on print news and general TV,” Keogh said.
The Commission also highlighted major trends reshaping the media industry, such as growth in digital consumption and the migration of advertising dollars online.
“Australian media markets are being transformed by consumers’ growing preference for digital media,” Keogh said.
“This shift is leading advertisers to invest more heavily in online and digital channels.”
“Owners of traditional media platforms such as radio, free-to-air television and newspapers will continue to face strong competition from digital media. Southern Cross will be no exception, even after the acquisition,” he said.
“Ultimately, we found that the acquisition would be unlikely to substantially lessen competition in any market.”
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