Citi analyst Justin Diddams says a Seven West Media and Fairfax Media merger could carry $125 million in cost savings by removing corporate costs, adding scale...

Citi analyst Justin Diddams says a Seven West Media and Fairfax Media merger could carry $125 million in cost savings by removing corporate costs, adding scale and integrating sales functions. Diddams wrote that there was renewed interest in M&A activity across the market, while media bosses have been meeting with Communications Minister Malcolm Turnbull to discuss potential ownership law changes. With this background, we view a merger between SWM and FXJ as a credible transaction in the media sector, achievable with (or without) regulatory reforms and we view SWM driving the process, backed by majority shareholder in SVW, Diddams told clients in a speculative note on Friday in response to considerable investor demand for information about the benefits or otherwise of various potential tie-ups. Diddams says the tie up would create what he argues will be the largest Australian listed media company by revenue. (VIEW LINK)


2 topics

Livewire News brings you a wide range of financial insights with a focus on Global Macro, Fixed Income, Currencies and Commodities.

Expertise

No areas of expertise

I would like to

Only to be used for sending genuine email enquiries to the Contributor. Livewire Markets Pty Ltd reserves its right to take any legal or other appropriate action in relation to misuse of this service.

Personal Information Collection Statement
Your personal information will be passed to the Contributor and/or its authorised service provider to assist the Contributor to contact you about your investment enquiry. They are required not to use your information for any other purpose. Our privacy policy explains how we store personal information and how you may access, correct or complain about the handling of personal information.