Ten Network Holdings

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Ten Network Holdings Ltd
Private
Industry Media
Founded 31 March 1998; 19 years ago (1998-03-31)
Headquarters Sydney, New South Wales, Australia
Key people
Paul Anderson (CEO)
David Gordon (Chairman)
Products Television
Decrease A$232 million
Owner CBS Corporation
(CBS Network Ten BV) [1]
Website tenplay.com.au/corporate

Ten Network Holdings Ltd, is one of Australia's major media companies. It is headquartered in Sydney, Australia, and owned by CBS Corporation.

Assets[edit]

While originally focusing on running a television network, Ten has recently diversified into a range of other media areas over the past decade. Below are some of the businesses it has run, or is involved with:

History[edit]

CanWest Sale[edit]

On 24 September 2009, CanWest announced that it was selling its 50.1% stake in Ten Network Holdings for A$680 million (following the 2006 concentration/restriction on Australian media ownership),[2] in order to pay down its significant debt, although it was not enough to save the former parent, which went out of business the next year.

James Packer share purchase[edit]

During October 2010, James Packer, (through his private for Consolidated Press Holdings) bought 17.88% of shares in Ten Network Holdings.[3] Half of this was then bought from Packer by Lachlan Murdoch; the two are listed as joint owners of 17.88% of the company [4]

On 26 November mining magnate and Australia's wealthiest woman, Gina Rinehart was appointed a position of the board after purchasing 10% of the company.[5]

Speculation surrounds the future of the Packer investment as upcoming changes to sport broadcast regulation and Ten's low share price in a slowly resurgent market are seen as possible drivers for the current stake.

On 23 February 2011, the board of Ten Network Holdings terminated the contract of CEO Grant Blackley. Lachlan Murdoch was appointed acting CEO.[6] In February 2012, Murdoch was appointed Chairman by the board, replacing Brian Long who became Deputy Chairman, with James Warburton as the company's CEO.[7]

On 26 March 2014 Hamish McLennan was appointed Executive Chairman after becoming Chief Executive Officer and Managing Director of the Company in March 2013 replacing James Warburton. Lachlan Murdoch retired as Chairman and a Director to join News Corp and 21st Century Fox as Non-Executive Co-Chairman.[8]

On 27 July 2015, Paul Anderson was appointed Chief Executive Officer, and Non-Executive Director David Gordon was appointed Chairman after Hamish McLennan stepped down from both roles.[9]

Foxtel takeover bid[edit]

In 2014, News Corp/Telstra-owned Foxtel and U.S. cable company Discovery Communications made a joint-venture to take a bid on Ten. Other U.S.-based companies and investment firms, such as Anchorage Capital Group and Saban Capital Group, were also on the bidding list. However, this was opposed by WIN Corporation owner and Ten shareholder Bruce Gordon stating that Ten would remain in the Australian hands.[10]

On 15 June 2015, Foxtel officially agreed to buyout 15% shares in Ten Network Holdings, pending the approval from the Australian Competition and Consumer Commission. Prior to the acquisition, Discovery backed out from bidding partnership with Foxtel.

There were numerous reports stated that Foxtel will push-through the 15% acquisition of Ten once the Australian government will abolish the restriction on cross-media ownership.

2017 financial turmoil[edit]

Announcing a AU$232 million half year loss in 2017, Ten Network Holdings warned that there was "significant doubt on the group's ability to continue" and their future hinged on an extension or renewal of a AU$200 million debt guarantee by three of its largest shareholders Lachlan Murdoch, Bruce Gordon and James Packer which expires on 23 December 2017.[11][12] In June 2017, Murdoch, Gordon and Packer withdrew support for a $250 million guaranteed loan that would remedy the expiring $200 million debt guarantee.[13][14] In response, Ten requested its shares on the Australian Securities Exchange be placed in a 48 hour trading halt while it assessed its options concerning receivership.[15][16] On June 14, Ten went into voluntary administration.[17][18]

Purchase by CBS[edit]

Upon the news of receivership, Ten's largest shareholders (Murdoch and Gordon) attempted to merge their assets to save Network Ten. The Australian Competition and Consumer Commission even stated that they will not oppose the said merger bid, which would saw both shareholders enjoying a 50% stake in the network.[19][20]

However, on 28 August 2017, Ten's administrators announced that US media company CBS Corporation (which has a 33% share in channel Eleven) had entered into a binding agreement to purchase the company for $123 million, subject to approval of the Foreign Investment Review Board. CBS refinanced Ten's existing debt including guarantor fees to billionaire shareholders James Packer, Lachlan Murdoch and Bruce Gordon, and existing loans from the Commonwealth Bank. As a result, once the deal is approved, CBS will take over in full with current shareholders losing their shares and its value.[21][22]

Gordon and Murdoch, whose joint bid for the company has not been accepted, went to the Supreme Court of New South Wales in an effort to delay CBS's takeover of Ten.[23] This delayed the administrator's meeting with creditors until 12 September.[24] At the meeting, creditors overwhelmingly voted in support of CBS' bid, citing concerns over Murdoch's management of Ten over the past years and talk of mass job cuts in the news department under Murdoch ownership. On 10 November 2017, the Supreme Court approved the purchase.[25]

On 16 November 2017 the purchase by CBS was completed and shares were transferred to CBS Network Ten BV, a company registered in the Netherlands.[26] [27][28]

References[edit]

  1. ^ Request For Removal From The Official List, Ten Network Holdings, 15 November 2017.
  2. ^ "CanWest sells Ten Network stake for $680m". The Australian. 24 September 2009. Retrieved 2 August 2015. 
  3. ^ Curran, Enda; Koons, Cynthia (20 October 2010). "Australian Billionaire Packer Buys Ten Network Stake". The Wall Street Journal. Retrieved 21 October 2010.  |section= ignored (help)
  4. ^ AAP, REUTERS, Business Day. "Packer off Ten board as shake-up continues". Sydney Morning Herald. Fairax. Retrieved 17 January 2012. 
  5. ^ Janda, Michael. "Ten CEO sacked, Lachlan Murdoch steps in". ABC News Online. ABC. Retrieved 17 January 2012. 
  6. ^ Janda, Michael: Lachlan Murdoch appointed acting Ten CEO, ABC News, 23 February 2011.
  7. ^ Ten Appoints New Chairman, Ten Network Holdings, 10 February 2012.
  8. ^ Changes to TEN's Board of Directors, Ten Network Holdings, 26 March 2014.
  9. ^ Ten Network Board And Senior Management Changes., Ten Network Holdings, 27 July 2015.
  10. ^ Discovery, Foxtel Takeover of Australia's Ten Network Opposed by Major Shareholder. The Hollywood Reporter. Retrieved 07-04-2015.
  11. ^ Ryan, Peter (27 April 2017). "Ten Network casts 'significant doubt' on its viability after announcing $232m first-half loss". ABC News. Retrieved 18 May 2017. 
  12. ^ Freed, Jamie (27 April 2017). "UPDATE 2-Fate of Australian TV network Ten in hands of billionaire trio". Reuters. Retrieved 18 May 2017. 
  13. ^ "Network Ten's future in doubt as billionaire backers Murdoch and Gordon pull their support". Herald Sun. 13 June 2017. Retrieved 12 June 2017. 
  14. ^ Mason, Max (11 June 2017). "Ten's billionaire shareholders back away from loan guarantee". The Australian Financial Review. Sydney. Retrieved 13 June 2017. 
  15. ^ Letts, Stephen (13 June 2017). "Ten Network in trading halt and facing receivership after failing to secure financial backer". Australian Broadcasting Corporation. Retrieved 13 June 2017. 
  16. ^ "Network Ten places shares in trading halt". Sky News Australia. 13 June 2017. Retrieved 13 June 2017. 
  17. ^ Danckert, Sarah (14 June 2017). "Network Ten heads into voluntary administration". The Sydney Morning Herald. Sydney. Retrieved 14 June 2017. 
  18. ^ Pash, Chris (14 June 2017). "The Ten network is in administration". Business Insider Australia. Sydney. Retrieved 14 June 2017. 
  19. ^ Janda, Michael; Chau, David (24 August 2017). "No problem with Murdoch-Gordon Ten takeover, says ACCC". ABC News. Retrieved 28 August 2017. 
  20. ^ Chau, David (5 July 2017). "Murdoch and Gordon launch takeover bid for Network Ten". ABC News. Retrieved 28 August 2017. 
  21. ^ Battersby, Lucy (28 August 2017). "US broadcaster CBS to buy Ten Network". The Sydney Morning Herald. Retrieved 28 August 2017. 
  22. ^ Kruger, Colin (20 September 2017). "CBS won because Network Ten employees didn't want Lachlan Murdoch to come back". The Sydney Morning Herald. Retrieved 4 November 2017. 
  23. ^ Whitbourn, Michaela (7 September 2017). "Billionaire Ten backer Bruce Gordon wins first round in challenge to CBS takeover". The Sydney Morning Herald. 
  24. ^ Knox, David (7 September 2017). "Administrators delay TEN creditors meeting". TV Tonight. 
  25. ^ "Deals of the day-Mergers and acquisitions". Reuters. November 10, 2017. Retrieved 2017-11-10. 
  26. ^ CBS Corporation Completes Acquisition Of Ten Network., Ten Network Holdings, 16 November 2017.
  27. ^ Request For Removal From The Official List, Ten Network Holdings, 15 November 2017.
  28. ^ Kruger, Colin. "Euro Ten". MSN Money. The Canberra Times. Retrieved 16 November 2017. 

External links[edit]