Seven West Media set to offload stake in Sky News company

Kerry Stokes’ Seven West Media is understood to be selling its stake in the firm that owns Sky News Australia.

A change of heart: Seven West Media chairman Kerry Stokes.

Kerry Stokes’ Seven West Media is understood to be selling its stake in the company that owns Sky News Australia, as negotiations with suitor News Corp edge towards a conclusion.

News Corp is in advanced negotiations to buy Australian News Channel, which is owned by Seven, Nine Entertainment and Britain’s Sky, after launching an initial bid nearly two years ago.

Seven (SWM) had been keen to keep its holding and operate a joint venture with News Corp after the sale.

However, the free-to-air network has had a change of heart and will now sell its stake, which will leave News Corp as the sole owner of Sky News Australia, investment banking sources said.

Nine has long been a seller of its stake.

It’s believed the deal could be signed in coming days with an expected price of around $20 million, plus a trailing fee paid to Nine and Seven for the provision of content following the transaction.

News Corp, publisher of The Australian, plans to invest more resources into Sky News and integrate the service with its suite of news assets.