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No outcome in merger talks between Seven, Prime.

"This did not result in any agreement," Seven advises.

Media reports today suggested Prime Media was looking to merge with its much-larger affiliate, Seven West Media.

The Australian Financial Review noted: “The Prime bumpkins are touting a reverse-takeover of their metropolitan content wellspring – marginally ambitious given their respective sizes. Seven West’s market capitalisation is $1.23 billion to Prime’s $164 million so Big Harto could only buy Kerry Stokes’ free-to-air market leader with John Singleton’s favourite currency: lemonade stand IOUs. Perhaps the ludicrously expansive scheme is just a way of getting the Stokes clan to the table?”

Today Seven said in a statement, “To keep the market informed regarding reports of talks with Prime Media, Seven West Media confirms that there was a conceptual proposal received from Prime but that this did not result in any agreement. Seven West Media has discussions with its affiliate when appropriate on various matters of common interest.”

6 Responses

  1. Makes sense as Seven makes more money from Prime being an affiliate than owning it. Too much debt to inherit for a start before pissible reductions in running costs are even factored. Could possibly see CBS buying Prime to bypass WIN down the track when the Seven affiliation with Prime ends in 2019. Truth be known, Seven would probably look to offload 7QLD as well, but keep Brisbane. There is no money in regional TV anymore, it’s days are over.

      1. They do, but the monetary returns are shrinking. Best to sell while they still can like how Prime appears to be in s rush to, despite them being market leaders in their markets as well.

  2. Seven and Prime have a fairly good working relationship and Seven haven’t been interested in taking Prime over. The benefits of being able to sell ads nationally is offset by the fact that national branding campaigns and advertising small business in regional areas are different. Prime on the other hand will now be worried about Seven streaming directly to their viewers rendering them irrelevant.

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