SCA struggling to close TV sale
Southern Cross Austereo’s plan to sell its regional TV stations before the end of the year is looking shaky, as discussions stall with potential buyers including Seven West.
Southern Cross Austereo’s plan to sell its regional TV stations before the end of the year is looking shaky, as discussions stall with potential buyers Seven West Media and Network 10.
SCA chief executive John Kelly announced in August the media company was trying to find a buyer of its regional TV business in “the short-term”, but three months down the track the business appears no closer to a sale.
The struggle to offload the assets was discussed at an unscheduled SCA board meeting last week. In a statement to the ASX last week, SCA said it continued to “actively progress with the sale of its regional television assets”.
“SCA will update shareholders on the progress of these negotiations in accordance with its continuous disclosure obligations,” it said. But, sources close to the negotiations have told The Australian SCA’s talks with potential buyers have “hit some roadblocks”.
Regional communities across Australia have become increasingly frustrated by the quality of their local television news services, most of which have been beamed in from interstate, or the nearest capital city, since SCA shut down its operations in regional Australia in April 2023.
On October 9, four cross-party federal senators from Tasmania — Helen Polley, Jonno Duniam, Jacqui Lambie and Nick McKim — co-signed a letter to SCA chairman Heith Mackay-Cruise to express concern about the proposed sale of the company’s TV assets.
The quartet sought assurances from SCA and its “potential purchasers” it would commit to maintain an existing or expanded local news service in the state; that it would film, broadcast and produce from Tasmanian studios; and that it would maintain journalism-related jobs in Tasmania.
“Given the importance of local media to our state and the roles it performs, including local news content, local emergency services broadcasting and local employment, we believe the above requests represent for our state a fair and reasonable outcome,” the letter states.
A fortnight ago, Mr Mackay-Cruise responded to the letter, stating the company could not guarantee the revival of homegrown TV news bulletins in the regions.
“We share your belief in the importance of a diverse and robust media in Tasmania and indeed in Australia more broadly,” he said. “However, you will also appreciate that, constrained by pre-internet media ownership regulation, regional television is under pressure.
“Should a sale proceed, it will be a matter for the buyers to determine how they structure and operate the business in the future.”
The federal Member for Grey, Rowan Ramsey, whose electorate covers almost all of regional South Australia, wrote to Seven West Media chairman Kerry Stokes last month, urging him to “extend (SWM’s) commitment to respectable local news to our region” if the media giant becomes the new owner of SCA.
Representatives from both Seven and Paramount, the owner of Network Ten, declined to comment on the status of their discussions with SCA.
SCA did not respond to questions from The Australian.
A spokesman for Communications Minister Michelle Rowland also declined to comment, although it is understood regional television licensees may be subject to legislative and regulatory obligations in relation to local content and change in control.
SCA’s share price has plummeted 45 per cent in the past six months, closing at 52c on Friday.
Jimmy Lai tells HK court he was in the business of ‘delivering freedom’
Labor, the Coalition and Greens show rare cross-party solidarity as the most high-profile figure in Hong Kong’s pro-democracy movement speaks in court for the first time after years of legal persecution.
Amid Jones’ soul-searching, one name keeps surfacing
Tech guru and former Jones protege Alex Hartman died in Switzerland at the age of 39 not long after making allegations of indecent assault against the star broadcaster.