Southern Cross Media Group (SCA) has decided against pursuing a proposal that would have seen the media network acquire a portfolio of key print and digital news assets from Anthony Catalano's Australian Community Media (ACM).

After consultation with shareholders, SCA concluded that the relevant assets, which also included ACM's agricultural division, did not align with SCA’s audio-focused strategy and would not create value for SCA shareholders.

It follows several weeks of investigation by the media group into the viability of the deal. Speaking to Mi3 earlier this week, Catalano had been upbeat about what the deal would do for the two businesses, citing combined revenues near $700 million and close to $100 million in EBITDA and cost out efficiencies, which he said would add another $30 million in earnings. But following SCA's board meeting yesterday, the media mogul did not return calls - nor would SCA comment on the outcome.

But in an ASX note posted this morning, SCA thanks ACM's leadership for its "constructive and open engagement" over the duration of the review, and said it "wishes ACM well for its ongoing digital transformation".

SCA has confirmed that the guidance provided to shareholders on 15 May 2024 for the full financial year to 30 June 2024 remains unchanged.