Multi-media platform business Seven West Media Ltd (ASX: SWM) was at the top of the S&P/ASX200 decliners today, with share prices plummeting 7.7% at the time of writing to 53c per share.
It is back to reality for the beleaguered media stock, which enjoyed its time in the spotlight on April 13 as the biggest mover on the index after shares rocketed up 12% to 58c per share as the company announced it would sign a $1 billion deal with Cricket Australia for broadcasting rights over six years.
The deal came after Seven West submitted a successful joint bid with Foxtel, beating out Nine Entertainment Co Holdings (ASX: NEC) which had secured its own tennis broadcasting rights just a fortnight earlier.
The Seven West deal will see the network pay $75 million per year for the cricket broadcasting rights, with Nine paying $60 million per year for its tennis deal.
Seven already has rights for the AFL to its name.
Seven West shareholders would have hoped the good news could buoy the share price for longer, but it wasn't to be, as Nine shares also dropped 1.7% to $2.21 at the time of writing, while elsewhere in the sector Southern Cross Media Ltd (ASX: SXL) shares rose 0.6% to $1.11.
