Troubled Ten saved by USA broadcaster CBS

Troubled Ten saved by USA broadcaster CBS

In ¬June this year it was announced that Network Ten was going into voluntary administration.

CBS is Ten Network's largest creditor.

USA media company CBS Corp. plans to acquire Australian broadcaster Ten Network Holdings Ltd, beating out a bid from Australian media moguls Bruce Gordon and Lachlan Murdoch for the company after it went into receivership.

"We have been able to acquire it at a valuation that gives us confidence we will grow this asset by applying our programming expertise in a market with which we are already familiar".

Already a key content provider to Ten, CBS said they would use the new venture for "further multi-platform distribution and growth".

Neither Ten nor CBS disclosed any details of their deal, but media analysts as well as local media has given Ten a value of between A$200 million and $A250 million equal to between $160 million and $200 million.

Ten booked a A$232-million half-year loss in April, and rivals Seven West Media Ltd and Nine Entertainment Co Ltd swung to annual losses after writing down TV assets.

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The surprise bid comes after billionaires Lachlan Murdoch and Bruce Gordon had appeared poised to buy Ten after getting clearance from the competition regulator last week, subject to media ownership laws.

"The test will be whether an American network can relate to an Australian audience and deliver Australian programs that Australians want to watch".

The purchase includes the main Channel 10, as well as their other digital channels, Eleven and One, as well as their digital streaming platform TenPlay.

CBS, known in the United States as The Eye, may not be a household name in Australia just yet, but for the Murdoch empire, it's not the first time the two have clashed. CBS is also providing immediate financial support.

As part of today's deal, CBS will also launch its digital subscription on-demand service CBS All Access in the Australian market, Mumbrella reports.

The New York-based company has been going since 1927, with more than 240 television stations in the United States, as well the CBS radio network.

"The Transaction contemplates an acquisition of Network Ten by CBS, which will be effected by way of a refinance of existing secured debt arrangements (including shareholder guarantor fees) in full and a Deed of Company Arrangement ('DOCA') that will be put to creditors at the second creditors meeting".

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