Troubled Australian TV network, Ten Network, is set to be purchased by CBS. The network was placed into “voluntary administration” early this summer after their “billionaire creditors Mr. Murdoch, Mr. Gordon and James Packer backed away from guaranteeing a new $250 million line of credit.” 1 The binding agreement still requires the approval of the Foreign Investment Review Board.
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CBS, listed on the New York Stock Exchange as being valued at $28 billion, currently provides the major of Ten’s content so this buyout will allow Ten to continue to provide normal operations “…ahead of the upcoming meeting of creditors.” 2
Besides acquiring Ten, the deal with CBS will also include digital channel Eleven (CBS already owns a 33 per cent stake) digital channel One, and Ten’s digital platform, Tenplay.
Les Moonves, CBS chairman and chief executive said:
“Network Ten is a prime broadcasting asset with over half a century of experience and brand equity in Australia. 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.” 3
CBS also plans to launch their own on-demand digital subscription “CBS All Access” in order to compete with streaming services like Netflix, Stan, and Amazon Prime Video. They also hope to make the service available in Canada by next year.
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