Kerry Stokes poised to retire as Seven West chair if merger goes ahead
Australia’s media landscape faces a pivotal moment as Kerry Stokes, the billionaire chair of Seven West Media, is set to retire from the board in February 2026 should its proposed merger with Southern Cross Media go ahead. The tie-up would combine Seven West’s television and news assets with Southern Cross’s radio networks, reshaping national reach for both metropolitan and regional audiences.
Stokes, now 85, has been a central figure at Seven West since taking a substantial stake in 1995 and leading the company as chair since 2008. His decision to step down follows the status of the merger, which is still subject to regulatory approval and could alter the balance of control in the combined group. After the deal, SGH, the Seven Group Holdings holding company, would shift from a two-fifths stake to approximately one-fifth in the merged entity.
The leadership transition will be overseen by Heith Mackay-Cruise, the sitting chair of Southern Cross, who will become chair of the merged group. Stokes said he had “every confidence” in Mackay-Cruise’s ability to guide the combined company, adding that he intends to continue supporting the chair and board after his retirement from the board in February 2026. Joining him on the board will be Stokes’ son, Ryan Stokes, who has sat on Seven West’s board since 2012 and serves as chief executive of SGH since 2010.
Jeff Howard, Seven West’s chief executive, is set to remain CEO of the merged company and will join the board, along with two additional Seven West directors and two representatives from Southern Cross. The arrangement signals a carefully staged integration, aiming to preserve continuity in management while enabling cross-pollination of assets across TV, radio, digital, and publishing arms.
Analysts say the merger could deliver cost savings of tens of millions of dollars through shared overheads and integrated operations, while also expanding the scale and reach of the national media platform. Regulatory scrutiny will be a major hurdle, with the Australian Competition Tribunal and other authorities weighing potential competitive effects across regional markets.
What the leadership change could mean for Australia’s media mix
The proposed marriage of Seven West and Southern Cross Media would create a diversified media powerhouse spanning television, streaming, radio, and digital publishing. The move could boost negotiating power with advertisers and accelerate cross-platform strategies in a market increasingly driven by data and audience insights. Stakeholders will watch closely how the board balances regional strength with metropolitan audiences, and how the combined company navigates questions of media plurality and local content commitments.
Stokes’ departure also raises questions about succession planning and the longer-term governance of Australia’s media groups. The Stokes family has long played a visible role, with Ryan Stokes positioned as a potential future leader while maintaining responsibilities at SGH. The board composition—featuring leaders from both Seven West and Southern Cross—aims to preserve institutional knowledge while enabling strategic renewal.
Optus outages: government pressure and industry accountability
Separately, Australia’s communications sector is under heightened scrutiny after a pair of Optus outages disrupted essential services, including emergency calls, across several states. Communications Minister Anika Wells has told Optus’ parent company Singtel to take full responsibility for meeting legal obligations and ensuring the reliability of critical networks. Wells has called for transparency and has asked Singtel to appoint external advisers to independently assess network plans, reinforcing that outages must not recur.
The government has directed the Australian Communications and Media Authority to investigate the incidents, underscoring a push for accountability across the telecom sector. Optus and Singtel executives have defended ongoing improvements, while acknowledging the need for systemic changes to restore public confidence in emergency services access.
What’s next for Seven West, Southern Cross and the Australian media scene
With regulatory reviews underway, the merger timetable remains fluid. If approved, the leadership transition could formalize within the next two years, aligning governance with the combined assets’ strategic direction. For consumers, the outcome may influence programming, local news coverage, and the breadth of digital and streaming options in both urban and regional Australia.
As these developments unfold, observers will watch whether the promised efficiencies translate into stronger, more competitive offerings while ensuring that regulatory standards and public safety obligations remain at the forefront of Australia’s evolving media and telecommunications landscape.
