Seven West Media
(ASX:SWM) wants to acquire The Sunday Times and perthnow.com.au from News Corporation
(ASX:NWS).
This proposed acquisition can now go ahead because the Australian Competition and Consumer Commission has today announced it won’t oppose it.
ACCC Chairman, Rod Sim, said that, on balance, Seven West Media’s intended acquisition won’t “substantially lessen competition” for consumers or advertisers.
The key aspect of the ACCC decision is that print newspaper readership has experienced a large drop since many Western Australians get their news online now. And also, advertisers have been spending less money on print advertising over the last few years.
Seven West Media has welcomed the ACCC ruling. Previously, WA Premier, Colin Barnett, has expressed his opposition to this deal – from the perspective of preservering media diversity in WA.
Seven West Media reported a net profit of $184.3 million at 25 June 2016.
