Speculation persists that Seven West Media has been in talks with Here, There and Everywhere about a merger, and Southern Cross Media about an acquisition as well.
But continuing to hold back the prospect of tie-ups is the lagging share price of the free-to-air broadcaster.
There have been on-again, off-again discussions between the $362m HT&E and the $740m Seven West Media over the past two years.
Both media companies are understood to be keen on a tie-up, but HT&E’s shareholders would not back an acquisition of a free-to-air broadcaster, so the deal would need to be initiated by Seven West.
Seven West’s share price was 75c earlier this year and is now 46c, while HT&E was trading at more than $2 and its share price is now $1.16.
HT&E shareholders want cash for any buyout proposal, and Seven West also has $256m of net debt and would not want to borrow more for a deal, so relies on a lift in its shares for an equity raising.
Its major shareholder is Kerry Stokes and he would not be keen to tip cash in for a deal, and consistently drives a hard bargain on price.
Seven West is keen to buy other businesses to gain diversification and scale.
HT&E has also looked at Seven West, but the company wants too much money.
Radio broadcaster HT&E owns KIIS and The Edge radio stations through the Australian Radio Network.
Ratings have been soaring and it hopes to be soon cashed up after selling the 25 per cent stake it owns in mobile messaging business Soprano Design.
But while it is keen to embark on acquisitions, it first needs to sell its 25 per cent stake in mobile messaging business Soprano Design, for which it hopes to reap $80m, and its outdoor advertising business Cody in Hong Kong.
HT&E has $78m of net debt.
It, too has spoken with the $240m regional audio and television broadcaster Southern Cross, so perhaps a three-way tie up in the future emerges.
Barrenjoey and Goldman Sachs have worked for Seven West in the past, but it is understood that the takeover talks with HT&E have involved management.
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