Revealed: How close Channel Seven came to merging with Channel Ten this year - indicating long-term owner Kerry Stokes is open to a sale
Channel Seven reportedly came close to merging operations with rival free-to-air network Channel Ten this year, as Seven owner Kerry Stokes held talks with Ten's parent company ViacomCBS.
Sources said Mr Stokes - whose Seven Group Holdings parent company is Channel Seven's biggest shareholder - began talks in April with the boss of the US conglomerate to discuss the potential merger.
The talks included discussion of merging the two companies' sales and marketing teams in Australia but the two sides could not reach a deal, The Age reported.
While Mr Stokes' negotiations with ViacomCBS president Bob Bakish did not result in a deal, media analysts said it indicated the 80-year-old Western Australian billionaire was prepared to offload his debt-saddled Seven network assets.
Kerry Stokes pictured with his wife Christine Simpson-Stokes. The Seven West Media chairman was reportedly in talks with media giant ViacomCBS to merge parts of Channel Seven and Channel Ten
As of the end of July, Seven's net debt had reached $481million.
Seven chief executive James Warburton has also made clear his intention to sell off certain parts of the company to allow it to restructure more easily.
Impasse: Talks between Mr Stokes and the ViacomCBS boss included discussion of merging the two companies' sales and marketing teams in Australia but the two sides could not reach a deal
Seven and ViacomCBS have both declined to comment on the report.
Sources said Mr Stokes was undeterred by Australian federal laws prohibiting more than one of the free-to-air TV networks being owned by the same company.
The Seven West Media chairman - who was valued at $3.8billion by Forbes this month - is reportedly optimistic about navigating around the rule because of his close ties with Canberra.
Treasurer Josh Frydenberg was the best man at the wedding of Mr Stokes' son Ryan in 2016.
Ryan Stokes is understood to have less interest in his family's media holdings than his father.
Former Foreign Minister Julie Bishop and her partner David Panton, former Prime Minister Tony Abbott and his wife Margie as well as hospitality mogul Justin Hemmes and his partner Kate Fowler also attended the high-powered nuptials.
Ryan Stokes pictured with his wife Claire. He is understood to have less interest in his family's media holdings than his father
Last month, it emerged Seven West Media had refused to pay full price for its broadcast rights with Cricket Australia, only making a partial payment that is certain to stretch a relationship that is already incredibly strained.
Seven and CA were at loggerheads on the eve of the 2020-21 season, with the disgruntled free-to-air broadcaster threatening to walk away from its commitment to the sport.
Seven, which was due to pay $25million to CA, confirmed a smaller total had been transferred.
'Seven has paid the first instalment reflecting our assessment of fair value,' Mr Warburton said in a statement.
ViacomCBS's Australian subsidiary owns Ten and the local versions of MTV and Nickelodeon and turned over more than $27billion in revenue in 2018.