CBS to buy Australia's Network Ten

CBS to buy Australia's Network Ten

The Australian government is pursuing reforms which could have allowed the deal, but the bill is now stalled in parliament and it looks like Network Ten could not afford to wait it out.

U.S. media and entertainment company CBS Corporation has announced it will acquire Network Ten. Many believed the struggling network was going to have trouble holding onto Cricket Australia's Big Bash League. Let's take a look at the details.

The network was placed into voluntary administration in June, after Ten's billionaire shareholders Lachlan Murdoch, Bruce Gordon and James Packer decided against guaranteeing a new $250 million loan to replace the existing $200 million overdraft from the Commonwealth Bank. CBS already owns 33% of Eleven. The final sale price has not been disclosed. CBS is also providing immediate financial support.

"CBS recognises the significance of Ten in the Australian broadcasting community", Mr Nunez said. This followed the company posting a loss of $232.19 million in April. It seems likely that even more CBS content will be showing up on the channel in the years ahead, given that it now owns the network.

CBS and NY hedge fund Anchorage Capital Group were among nine parties that signed non-disclosure agreements to gain access to Ten's information memorandum.

The deal, which is subject to Foreign Investment & Review approval, involves a refinancing of secured debt arrangements, including shareholder guarantor fees put up by Murdoch and Gordon.

Media analyst Peter Cox said CBS' challenge would be to try to keep a third commercial network in Australia viable, adding that a third broadcaster in Britain and New Zealand had not worked.

The $28bn CBS Corporation, a long-term provider of content to Ten, owns CBS Television Network, cable networks, content production and distribution, television stations, internet-based businesses and consumer publishing.

KordaMentha's Jarrod Villano stated that the main objective is to make sure that the broadcasting of Ten is uninterrupted during the finalization of the transaction.

As ABC reports, the Australian network has confirmed that CBS has entered a binding agreement to buy its business and assests.

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