Since the new distribution deal signed in April, things couldn’t be better between SCA and the Nine network according the Nine CEO Hugh Marks.

In a statement, he said, “The early performance of our new affiliate agreement has surpassed our expectations, and we look forward to a long and prosperous relationship between our two companies.”

Nonetheless, this morning, Nine advised the ASX that it had sold its 9.9% stake in Southern Cross Media for $1.54, considerably more than the $1 or so per share at which it was trading just six months ago.

Some speculate that Nine had bought the stake in anticipation of changes to current media laws in which case a merger between the two companies may have been worthwhile. 

Now that it seems unlikely such changes will occur anytime soon, merger talks have been shelved and Nine has decided it could use the proceeds of the sale elsewhere.