Kerry Stokes was $50 million worse off by the time he had jetted into Washington last Friday as part of the “how good” team of PM Scott Morrison. That was thanks to a sharp fall in the price of Seven West Media shares on Friday, which capped off a huge losing week for the stock.
The value of Stokes’ 41% stake in Seven West (held through the billionaire’s key company, Seven Group Holdings) fell by 8.4% on Friday, taking the company’s fall for the week to a rather embarrassing 14.6%. Friday’s fall wiped $22 million from the value of Stokes’ holding. The loss for the week was $50 million. And all that without explanation from the company or a query from the ASX.
This won’t be helped by new revelations last night that Victoria Cross recipient Ben Roberts-Smith is now part of an investigation by the Australian Federal Police looking at alleged conduct in Afghanistan. Roberts-Smith currently runs Seven West Media’s most profitable business — the Queensland operations of the Seven Network.
News of a looming purge, under new Seven CEO James Warburton, is also out today. Nine reports a “restructure” is on its way before Seven announces its 2020 programming on October 23. Warburton’s first remarks upon replacing Tim Worner last month signaled that Seven West would become a hunter looking for acquisitions, but a restructuring of the type suggested on Monday would signal a clean-up to make the company more attractive to possible buyers (such as News Corp, Disney or NBC Comcast).
That would have been known to Stokes in Washington, where he was basking in the reflected glory of our PM. Stokes was one of a group of Australian business-people to accompany Morrison on his state visit to the US. Others who flew in or joined from the US included iron ore billionaires Gina Rinehart, Andrew Forrest, Anthony Pratt, Lachlan Murdoch and Sarah Murdoch. Rupert Murdoch and Jerry Hall were no-shows at the state dinner.
At 38 cents a share, Seven West now has a market value of just $573 million. That’s $80 million less than gross debt of $653.8 million at June 30, and just $7 million more than net debt of $566 million. Stokes’ 41% is now worth just $235.5 million. In other word, investors have changed their minds about the chances of Seven West improving its 2019-20 performance under Warburton. Will Murdoch’s News Corp now set its sights on the prey?
As a shareholder in Seven Media, I’d actually welcome a takeover by Murdoch. It wouldn’t make Seven Media less biased that it is now under Kerry Stokes.
My preference though would be for Seven Media to go bankrupt completely, and to be run by new owners with no dominant shareholder. Perhaps with a cap of 5% for single shareholders.
I’d even buy into a reformed media company. And even consider resubscribing to the West Australia newspaper.
Such good news that Seven West Media is doing so badly. They say every dog has its day. Hopefully soon we’ll see Seven West Media flushed away.
Could not agree more bill, I sold my seven west shares at a loss but way above todays price, but wonder if maybe this is a Stokes plan, run the price down to rock bottom, change the station policies then sell when the price goes up, this sort of thing goes on all the time, its insider trading but they are allowed to get away with it as long as they donate a chunk to their pet politician at election time.
How stupid are these media magnates, by ignoring over 40% of their reader/viewer base by promoting only their own redneck political propagander and trickle down ideology and thereby only catering for a shrinking customer /advertiser base of the same political ideology, they are killing their own business, and the stupidity of their journalist and T.V presenters is even worse, in radio its 2GB who are now slowly starting to understand the damage being caused by talk back hosts like Alan Jones to their big business clients and advertiser customers, in the T.V medium its the Murdochs and Stokes, sooner or later the pendulum will turn and the Miranda Devines, Mark (nut case) Latham, Kerry Anne Kenneraly`s, bolts and all the other mad right wing fruit loops will hate themselves out of a job, their bile and vindictivness will drive the few remaining big companies away as their sales start to drop and people blacklist their products, neither I or my family buy any of the murdoch newspapers or watch the T.V channells or programs they control and avoid any products they promote, you will always get a few people of low interlect that watch/read this thrash because it agrees with their redneck ideology, but this will be less and less as the populace wakes up to the economic and enviromental harm these ideologies inflict on our world.
Great post , totally agree .
Except for one thing .. unfortunately the few with low intellect that watch and read the Murdoch shit served up each day , seam to be the majority .and far more than a few . and judging by the last election are easily manipulated into voting squarely against there own best interests . But change is slowly happening .. people are realising they’re being lied too constantly . But scary times still ahead