WIN called staff to meetings yesterday and revealed plans to shut five newsrooms by June 28 and get rid of between 35 and 40 full-time and casual staff.
Dropping from the ASX 200 is both a natural conclusion and a sign of things to come for Seven West Media, whose share price has been sluggish for months.
With ad revenues down across the board, don't be surprised if you see more legacy media companies pushing for mergers this year.
Southern Cross Austereo has followed Seven West Media in slashing millions from the value of its TV operations.
With its biggest shareholder slashing the value of its holding, the Seven West board is under a lot of pressure.
Yet another company is using "extraordinary" hard ball negotiation tactics with their staff, this time in the media.
Chair Kerry Stokes and CEO Tim Worner were optimistic at Seven's annual general meeting. But staff and shareholders won't have much to smile about.
The bottom line for Nine-Fairfax is that it will have to avoid being a typical Australian media merger that destroys value, rather than creates it.