Kerry Stokes, the self-made billionaire who rose from humble beginnings to become one of Australia’s most influential media moguls, is stepping back from the industry. This week, the 85-year-old signaled the end of his storied media career as his once-dominant TV network, Seven Network, prepares to merge with Southern Cross Austereo, the owner of Triple M. This marks a significant shift in the Australian media landscape.
Unlike his contemporaries Rupert Murdoch and Kerry Packer, Stokes did not inherit his wealth or media empire. Born without the advantages of a wealthy family, he never met his father and initially worked installing television antennas before striking it rich in property development. Over the years, he built a diverse business portfolio that included selling heavy equipment, acquiring TV stations, and leading Seven Network for three decades. Despite his media ventures, the bulk of Stokes’ $10 billion fortune comes from other industries.
The Rise and Fall of a Media Empire
Stokes’ career in media has been marked by both success and controversy. Although he never matched the global influence of Murdoch or the swagger of Packer, Stokes was known for his hands-on approach in managing his businesses. However, the latter years of his tenure as Seven’s controlling shareholder and chair have been challenging. The network faced a culture crisis, exposing unsavory practices and leading to the departure of several senior executives.
In response, Stokes appointed Anthony De Ceglie, formerly editor-in-chief of The West Australian newspaper, as head of news for Seven. De Ceglie’s unconventional approach, which included introducing comedy and horoscopes into news segments, was poorly received, resulting in his departure after just 13 months.
Controversies and Legal Battles
Stokes’ tenure was also marked by his involvement in high-profile legal battles. Notably, he financially backed Ben Roberts-Smith, a Victoria Cross recipient, in a defamation case against major Australian newspapers. The case, which began in 2019, followed allegations of war crimes committed by Roberts-Smith during his service in Afghanistan. Stokes funded the legal battle through his private company, Australian Capital Equity, but ultimately faced financial losses when the court ruled against Roberts-Smith.
“Ben Roberts-Smith is innocent and deserves legal representation, and that scumbag journalists should be held to account,” Stokes declared after Seven West’s annual general meeting in 2022.
Stokes has a history of supporting controversial figures, often giving them a platform to share their side of the story. This approach has been both criticized and praised, reflecting Stokes’ complex legacy in the media industry.
The Future of Seven West Media
As Stokes prepares to step back, the future of Seven West Media is uncertain. The company’s financial health has deteriorated, burdened by debt and an expensive AFL broadcasting deal that extends until 2031. A former executive described the company’s situation as a “house of cards” of debt and revenue.
The proposed merger with Southern Cross Austereo values Seven West Media at just 13 cents per share, a stark contrast to the nearly $15 per share it commanded in 2007. This decline reflects broader challenges in the media industry, including the late adoption of streaming services and the diminishing influence of traditional print media.
Seven West Media’s valuation at 13¢ a share is a far cry from its $15 peak in 2007.
While Stokes’ son, Ryan Stokes, will retain a board seat in the new company, the family’s stake will be reduced from 40% to 20%. This transition raises questions about the future direction of Seven’s media interests and whether the company can adapt to the rapidly changing media landscape.
Conclusion: The End of an Era
Kerry Stokes’ departure from the media scene marks the end of an era for Australian broadcasting. His unique journey from humble beginnings to media mogul is a testament to his business acumen and resilience. However, as he steps back, the challenges facing Seven West Media highlight the broader difficulties confronting traditional media companies in an increasingly digital world.
As the industry evolves, the legacy of Kerry Stokes will be remembered for both his successes and controversies. The future of Seven West Media remains uncertain, but the impact of Stokes’ leadership will be felt for years to come.
