The head of an Australian media startup has spoken out after their deal to purchase the 7 Tasmania TV channel fell through.
It was announced in late February that Australian Digital Holdings had signed a binding agreement to purchase 7 Tasmania, along with SCA’s other regional TV assets, for $6.35 million.
Speaking to Pulse after Tuesday’s Seven West announcement, ADH CEO Jack Bulfin said his company discovered mounting concerns during due diligence in dealings with Southern Cross Austereo.
“The deeper we looked into this business, the more issues we uncovered – many of which had not been disclosed by SCA,” Bulfin said.
“Some posed serious risks to daily television operations and the long-term viability of the business. Those were risks we could not accept.”
“As due diligence progressed, it became increasingly difficult to trust the information provided. The numbers simply didn’t add up.”.
Responding to ADH’s claims, SCA said they conducted themselves “with professionalism, transparency and good faith”.
“While we acknowledge ADH is new to television, they ultimately failed to meet the obligations and deadlines they agreed to – which is why the deal didn’t proceed,” a company spokesperson said.
A key issue behind ADH’s withdrawal reportedly involved the Launceston studio premises.
The Watchorn Street building, purpose-built for the station in the 1960s but sold by Southern Cross Austereo in 2022, is set for redevelopment.
Pulse understands the building’s new owner had been encouraging Southern Cross Austereo to vacate the building since late 2024, with the lease having formally expired on 31 March 2025.
The station will temporarily relocate news production to Hobart for 2-3 weeks later this month while new studios are established at 183 Charles Street in Launceston’s CBD.
The new owners of the station, Seven West Media, will take over the station in July when their $3.75 million deal to acquires SCA’s remaining TV assets is finalised.
The announcement of the ownership change has triggered concerns about potential job losses and mainland-centralisation.
A cross-party group of Tasmanian senators last year wrote to SCA demanding assurances that local news operations remain in Tasmania should the station be sold.
They said the nightly 6pm news bulletin must continue to be produced and broadcast within Tasmanian studios, calling on SCA to reject any plans to move part or all of the operations interstate.
Premier Jeremy Rockliff has expressed hope that Seven’s announced acquisition this week will strengthen the local media landscape.
“Local news plays such a key role in informing, advocating, and entertaining communities,” Rockliff told Pulse.
“Watching the 6pm bulletin on Seven is a ritual for so many Tasmanian households, and I hope this acquisition leads to an increase in resources in Tasmania.”
In a statement, Seven West Media said it intends to “service the Tasmanian market from Tasmania, and to maintain the strength of the 7NEWS brand across the state on Seven and 7plus”.
“We’re committed to maintaining 7NEWS as Tasmania’s leading news service,” a Seven West Media spokesperson said.
ADH CEO Jack Bulfin has wished the new owners and their staff “every success”.
“The teams in Tasmania, Spencer Gulf, and Darwin do outstanding work under often challenging conditions,” he said.
