Australia’s Seven West Media has agreed a deal to acquire regional broadcast group Prime Media. The move is a further step in the consolidation of Australia’s traditional media industry.
The two companies announced on Friday, October 18, that Seven will make the acquisition entirely through the issue of new shares to the owners of Prime. Both companies are currently listed on the Australian Stock Exchange. The deal is valued at AU$63 million (US$43 million) and is subject to shareholder approval in December. Completion would take place in early 2020.
Prime is currently an affiliate broadcaster for Seven and the deal, styled as a merger, is expected to lead to an annual AU$11 million (US$7.5 million) of cost savings, superior opportunities for advertisers, and free up resources for investment in content and digital delivery. The combined businesses will be led by James Warburton, Seven’s new MD and CEO, with the company chaired by Seven chairman Kerry Stokes.
Full Content: Yahoo Finance
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