Gina Rinehart, Australia's richest person, has funded former Seven Media executive Bruce McWilliam's acquisition of a nearly 10% stake in Southern Cross Media, the owner of the Seven Network, Triple M and Hit radio brands, and West Australian Newspapers. The arrangement, valued at approximately $26 million, was disclosed in ASX filings on Wednesday.
Details of the Deal
While the deal does not give Rinehart a direct stake in Southern Cross, she could take control of the shares if McWilliam breaches the terms of their deed. According to the documents, Hancock Prospecting and its subsidiaries hold a "relevant interest" in a combined 9.5% stake, with Rinehart considered a substantial shareholder due to her finance company's power to control the disposal of the shares.
Rinehart's Return to Media
This investment marks Rinehart's return to the media industry after a brief foray over a decade ago, when she bought a 10% stake in the Ten Network and a 15% stake in Fairfax, both of which she later exited. Fairfax Media merged with Nine in 2018 to create Australia's largest integrated media player.
Australia's media landscape is already dominated by another billionaire, Rupert Murdoch, whose News Corp Australia owns the majority of mastheads in the country as well as Sky News Australia.
Southern Cross Media's Ownership
West Australian billionaire Kerry Stokes remains the largest shareholder in Southern Cross Media, which was formed when his company Seven West Media merged with Southern Cross earlier this year. Stokes exited as chair after the merger, but his family retains a 20% share. The McWilliam/Rinehart investment now represents the second-largest stake in the company.
McWilliam, a former commercial director at Seven West Media and a confidant of Stokes, purchased shares worth $11.2 million and $14 million in recent weeks, largely financed by Rinehart's loan. He stated, "I believe in the company and the shares came up at a good price given what they were at before the merger."
Financial Performance and Market Context
Since the merger, Southern Cross has reported a 1.5% decline in total revenue to $1.008 billion for the half year to December. News, Nine Entertainment, Southern Cross, and Australian Community Media collectively control more than 80% of the market.
Rinehart's Political Influence
Beyond media, Rinehart is an influential political voice, having called for screening of immigrants' social media and financially backing right-wing movements, including purchasing a plane for One Nation leader Pauline Hanson. Hancock Prospecting donated nearly $900,000 to the right-wing campaign outfit Advance last financial year, according to Australian Electoral Commission data.
