The US network announced it entered into a binding agreement to purchase Ten from the Aussie network's receivers and managers
Major US commercial network, CBS, has struck a deal to take over Channel Ten from the troubled network’s receivers and managers.
Making the announcement, CBS Corporation’s CEO and Chairman, Leslie Moonves, revealed that in addition to buying linear channel, Ten, the deal includes digital terrestrial television channel (DTT) Eleven, which CBS already owns a 33 per cent stake in, as well as DTT channel, One, and digital platform, Tenplay. Financial details have not been disclosed.
“Network Ten is a prime broadcasting asset with over half a century of experience and brand equity in Australia,” Monnves said in a statement. “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."
CBS Studios International president and CEO, Armando Nuñez, said Network Ten and CBS have enjoyed a close working relationship for nearly two decades.
"CBS will continue to provide Network Ten with access to the very best in US content. We also look forward to working with the outstanding team at Network Ten to enhance and expand on its great legacy of Australian news, drama, reality and sports programming,” he said. "This acquisition not only presents CBS with considerable broadcasting opportunities in Australia, but also allows for further multi-platform distribution and growth.”
The transaction will be completed in accordance with the Australian voluntary administration process and is subject to certain regulatory approvals. PPB Advisory was appointed receivers and managers to Network Ten on 1 July 2017 following the appointment of KordaMentha as voluntary administrators by directors on 14 June, and has been working to sell Network Ten as a going concern, via a recapitalisation of the business, through a competitive tender program.
In July, CBS was revealed as the largest single creditor to Network Ten, claiming debts of us up $843 million from the embattled Australian broadcaster. In total, Ten reportedly owed secured creditors $129 million and accumulated losses of $1.3 billion.
PPB Advisory will also provide immediate funding to Network Ten, backed by existing shareholder guarantors. This will allow operations to continue while the sale process is conducted.
The announcement comes at the same time as CBS revealed plans to also launch CBS All Access, the Company’s digital subscription video on-demand service, in the Australian market. This will be followed by the roll out of the service in Canada next year.
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