Unpacking Kerry Stokes' latest media move as Seven swoops on ARN
The media sector has been rife with speculation about ARN's bid for radio rival Southern Cross. Stokes' involvement only adds to the intrigue.
If consolidation is going to happen in Australia's media sector, then Kerry Stokes wants to have a seat at the table. That is one of the messages emanating from the Seven West Media camp following the news that the company and its billionaire owner had built a 19.99% stake in ARN Media following a $60 million off-market raid over the weekend.
The media sector has already been rife with speculation about ARN's bid for rival radio and TV operator Southern Cross Austereo, which landed just as ARN closed in on one of the biggest talent contracts in Australian media history with star presenters Kyle Sandilands and Jackie 'O' Henderson. The involvement of Stokes in the unfolding situation only adds to the intrigue.
Stokes and Seven are supportive of the ARN and Anchorage proposal, according to a person familiar with the company's strategy. Southern Cross has regional affiliate deals in place with Seven in certain markets and may be moving to protect those interests, others speculated.
Media market observers were also quick to note on Monday that Seven and ARN share at least one thing in common: Jeff Howard. The Seven chief financial officer is an ARN alumnus and was even considered a potential CEO candidate at the company.
