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Seven West Media and Network 10 are shaping up as the likely buyers of Southern Cross Austereo’s regional TV stations in a deal more than five years in the making.

Street Talk understands the two networks are the preferred parties to acquire their respective affiliates. Sources said nothing had been signed and there was no guarantee any deal would go ahead, but an agreement was being negotiated and could be finalised within the next month.

If the sale gets across the line, industry sources told this column it would make sense for Ten and Seven to continue to run those affiliate stations

According to an SCA coverage map dated June 2022, for 10 Network a sale would mean picking up Southern Cross’ stations across the country. For Seven, this means Tasmania, Darwin and South Australia.

Southern Cross has long sought to sell its ailing regional TV assets but has struggled to find a buyer. Just this year, those same assets were a key reason a proposed takeover of Southern Cross by its radio rival ARN Media fell over.

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“SCA strategically is committed thematically to being ‘all about Audio’ and accordingly will continue to look to reduce its exposure to the TV ad market through the sale of its licences,” the company said in its annual results, noting that revenues from the declining regional TV market were falling faster than forecast.

Sources said SCA was negotiating with Seven and Ten around the $15 million to $20 million mark. Earnings for the unit, which consists of 96 regional television licences, declined from $38 million to $19 million after Nine switched its affiliate arrangements back to Win in 2021.

SCA last reported a 29 per cent decline to 13.3 million. This column understands further declines in the market and Ten ratings have pushed forecasts to around $5 million. As such, this would imply three-times earnings for the unit if the sale goes ahead at the expected price.

Ten, Southern Cross and Seven declined to comment.

Sources told Street Talk last month that the Stokes family-controlled network had offered Southern Cross $40 million for two of its affiliates three years ago, representing three-times earnings. That offer had been reduced to $20 million, they added. Others disputed these figures, saying no offer was formally put on the table.

The Australian Financial Review reported on Monday that billionaire and Nine Entertainment kingmaker Bruce Gordon had quietly retired from the boards of his regional broadcaster WIN and private investment firm Birketu.

The sale of SCA’s TV units would be closely watched by WIN, which is close to offloading its northern NSW TV station. Gordon bought the asset for $55 million in 2017 from SCA. If a possible Ten-Seven deal is anything to go by, it will go for less than that.