SCA Seven West Media merger approved by ACMA but SCA must sell some licences
The ACMA has approved a transaction that will facilitate the proposed merger between Seven West Media Limited (SWM) and Southern Cross Media Group Limited (SCA).
While approving it, the ACMA noted the merger will result in temporary breaches of the media diversity rules in 17 commercial radio licence areas. There will be a reduction of media diversity points in four – Mt Isa and Roma (QLD), Mildura (VIC) and Bunbury (WA) and a greater reduction in 13 in WA including Albany, Bridgetown, Carnarvon, Esperance, Geraldton, Kalgoorlie, Karratha, Katanning, Merredin, Narrogin, Northam, Port Hedland and Remote Commercial Radio Service Western Zone.
SCA will have a court-enforceable undertaking to divest commercial radio and/or commercial television broadcasting licences in the affected areas.
In a release to shareholders in response, SCA said:
“SCA is committed to regulatory reform of existing media ownership laws including potential amendments to the Broadcasting Services Act which would allow SCA to retain all existing commercial broadcasting licences.”
With the ACMA approval, clause 3.1(a) of the Scheme Implementation Deed has been satisfied. Seven West Media’s meeting to approve the scheme is to be held on December 22.
So to my understanding, they have to resell the licenses in them areas to other companies or can seven have them as well?
I’m In the Ouyen area which technically isn’t covered by Mildura but we can still get the Mildura stations very well there are two things which could happen In Mildura radio when a station has to be sold, ARN could buy one of the stations & potentially re-brand It to Power FM or ACE Radio could even make a move & add another MIXX FM station to the network.
… so SCA is essentially holding up two fingers to the ACMA and saying that they intend to keep all the licences … roll out the popcorn …
I wonder if Resonate would purchase the FM licenses in Roma and Mt Isa and that would make their network a better proposition for a purchaser (maybe Broadcast Operations Group)?
Would ARN be interested in any more radio assets now that they are a borderless entertainment group?
Mildura certainly feels like an ARN in waiting.
CHR format using the infrastructure vacated by SCA – Local brekky show, then VT out-of market for dayparts I reckon.
Although as Clem has said… ACE is still pretty aggressive opening stations