Shares in Seven West Media fell hard after an analyst downgraded the free-to-air network following the deal with Foxtel for cricket Australia’s media rights.
A short time ago, the shares were down 9.4% to $0.525.
UBS reduced its share price target for Seven West Media to 60 cents from 70 cents.
“We reduce our PT (price target) to reflect a higher TV cost base (with escalation in content costs outpacing share gains), and greater print declines,” the UBS note said.
The deal by Seven and Foxtel ends 40-plus years of Nine’s Wide World of Sports being the home of cricket.
The six-year TV rights deal is worth $1.182 billion to Cricket Australia.