Seven West Media shares are tanking

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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.

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