News Corp to sell Sunday Times to Seven West Media

News Corp is to sell The Sunday Times newspaper to Kerry Stokes’s Seven West Media, subject to regulatory approval.

A deal to sell The Sunday Times to Seven West would allow News Corp to divest its WA printing presses.

Rupert Murdoch’s News Corporation has agreed to sell The Sunday Times newspaper to Kerry Stokes’s Seven West Media, subject to regulatory approval.

It is understood the Australian Competition & Consumer Commission will announce the proposed transaction on its registry today and open the process to public submissions, as it seeks to determine whether a deal would substantially lessen competition in the West Australian media ­sector.

Sources said Seven, which owns Perth’s only weekday metropolitan newspaper, The West Australian, and News Corp had agreed upon the commercial terms for the deal. It is believed the sale price will be about $12 million-$15m and that the transaction will also include News Corp’s PerthNow website.

Publishing The Sunday Times one day a week is believed to be unsustainable and merging the newspaper into a daily operation will boost its profitability.

The West Australian is also expected to strike a content deal with News Corp, replacing an agreement with rival publisher Fairfax Media.

The Australian, published by News Corp, first revealed that talks between the major media companies had reignited in a serious manner this year, after earlier discussions had petered out.

A deal would allow News Corp to divest its WA printing assets and the company will strike a printing and distribution arrangement with Seven for national broadsheet The Australian. Seven owns free-to-air television business the Seven Network, which is particularly dominant in Perth.

Sources said The Sunday Times executive general manager ­Michelle d’Almeida briefed staff yesterday about the imminent ACCC review.

The companies are expected to argue that internet operators have added significant competition to the media market.

The Sunday Times had a circulation of 182,284 for the March quarter, which was down by 7.8 per cent year-on-year.

The West Australian saw Monday-to-Friday print sales fall by 8.6 per cent to 140,611 over the same period, according to the Audit Bureau of Circulation.