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Seven West Media Ltd plans to profit from baby boomers

Kerry Stokes’ Seven West Media Ltd (ASX: SWM) has bought a major stake in a lifestyle website aimed at Australia’s Baby Boomers.

Seven has bought a 33 per cent stake in Starts at 60, which the media group says is one of the fastest-growing media brands in Australia.

Starts at 60 was founded by Rebecca Wilson in 2013 and reported more than 1.5 million unique browsers and hit 5 million page views per month globally in January.

Ms Wilson said, “Seven’s investment brings enormous synergies to support our growth in Australia, and the funding will be used to create the best media and service offerings we can for this generation that has embraced us online”.

Seven boss Tim Worner says the investment will help the website expand its content and launch new services.

“It is a great business in a growing, influential and affluent market and expands our connection with our audiences and delivers those audiences to our advertising partners”, Mr Worner said.

It’s been a solid month for Seven with a 10% increase in its share price compared to Ten Network Holdings Limited (ASX: TEN) which is down 26%, and Nine Entertainment Co Holdings Ltd (ASX: NEC), which is down 16%. Seven is the only one of the trio to outperform both the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) by 9.8% and the customer discretionary index by 9%, in the past month.

Seven is expected to report its half year results today.

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Motley Fool contributor John Hopkins has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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