The new media laws will be proclaimed today and will begin a round of mergers and takeovers in various media companies. Observers are closely watching Southern Cross Broadcasting, which has had some active share trading in the past few days and, with its open share register and solid track record, could well be one of the first takeover targets.

Southern Cross shares rose by just over one dollar yesterday to $17.20.

Macquarie Media Group is thought to be a likely buyer. It has been prevented until now from owning more than 15% of Southern Cross, but from today that restriction will be lifted.

An internal Southern Cross memo, reported today in The Australian newspaper, quotes CEO Tony Bell commenting on Macquarie’s 13.8% stake in Southern Cross and reassuring staff about their future:

“While uncertainty obviously remains regarding the possibility of a change of control following the commencement of the new media laws, there should be no particular cause for alarm…

“Southern Cross Broadcasting is a successful, efficient and well-run company… Many of our staff and management are regarded as among the best in the industry at what they do. If a change in control did occur, our staff are a key asset of the business, and I would expect that would not change.”

One staff member with a watertight contract, who won’t be too worried about the effects of a takeover will be John Laws. If Macquarie Regional Radio takes over Southern Cross, it will gain control of the John Laws show, which could be an asset to its regional AM stations and regional radio sales company. At a time when there is speculation about the value of the Laws contract, an additional 40 or more stations taking the show might make it easier to justify Laws’ hefty pay packet, which is valid until 2010.