Learn To Invest
Stocks Special Reports LICs Credit Funds ETFs Tools SMSFs
Video Archive Article Archive
News Stocks Special Reports Funds ETFs Features SMSFs Learn


Troubled Ten saved by US broadcaster CBS

Simone Ziaziaris  |  28 Aug 2017Text size  Decrease  Increase  |  
Email to Friend

Page 1 of 1

SYDNEY - [AAP] Ten Network has been snapped up by US media giant CBS in a deal that should keep Australia's third commercial free-to-air broadcaster on air.

Receiver PPB Advisory and administrator KordaMentha said in a joint statement on Monday that CBS, which owns Ten shows including NCIS and was among the network's creditors, had entered a binding agreement to acquire the business and its assets.

"As part of the agreement to purchase the Network Ten business, CBS will provide immediate financial support to ensure continuity of operations ahead of the upcoming meeting of creditors," KordaMentha administrator Jarrod Villani said.

CBS Corporation chairman and chief executive Leslie Moonves said CBS, which has a current market capitalisation of $US28 billion ($A35 billion), was confident it would be able to use its market expertise to grow Ten.

The US network's move comes only days after Ten's billionaire shareholders Lachlan Murdoch and Bruce Gordon were given the regulatory all-clear to launch a joint takeover of the embattled free-to-air network.

Mr Murdoch and Mr Gordon sought a review of their bid in July after Ten was placed in administration and the competition watchdog ACCC reviewed factors including how a takeover would expand "Murdoch interests" in Australian media and how competition for supply of news services would be affected.

PPB Advisory and KordaMentha on Monday said the acquisition was an important milestone in securing a strong and stable future for the company and its stakeholders.

Email to Friend
Market News and Views Sign up today and receive our free Morning Note e-newsletter, daily in your inbox.

The deal includes Ten's ELEVEN channel, in which CBS already has a 33 per cent stake, channel ONE and Ten's growing digital platform TENPLAY.

The transaction is subject to Foreign Investment Review Board approval and the compulsory transfer of shares in Ten to CBS, which will require approval from the Australian Securities and Investment Commission.

Ten chief executive Paul Anderson said the network was very excited about further developing its relationship with CBS as the company's new owner and the strength it will provide during this "critical time".

Ten has been in a trading halt since June 13, when Mr Gordon and Mr Murdoch pulled their support for a new funding deal after an existing facility expired, leading the number three commercial broadcaster into voluntary administration.


AAP logo image

© [2017] Australian Associated Press Pty Limited (AAP) or its Licensors. This is the Morningstar service with content provided by AAP where indicated. AAP reserves all rights, including copyright, in services provided by it. The information in the service is for personal use only, does not constitute financial product advice (whether general or personal) and may not be re-written, copied, re-sold or re-distributed, framed, linked or otherwise used whether for compensation of any kind or not, without the prior written permission of AAP. You should seek advice from a professional financial adviser before making decision to acquire or dispose of a financial product.

This service is published for general information purposes only without assuming a duty of care. AAP is not in the business of providing financial product advice (whether personal or general advice), and gives no warranty, guarantee or other representation about the accuracy of the information or images contained in this service. AAP is not liable for errors, omissions in, delays or interruptions to or cessation of the services through negligence or otherwise. The globe symbol and "AAP" are registered trademarks.

Email To Friend