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Packer seriously raiding TEN

Australian television may be about to see another Packer on its board, just not at the network the family has been aligned with.

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The name Packer could again be aligned with Australian Television after James Packer made a bid for Network TEN shares yesterday.

Four years after he sold shares in PBL Media to private equity firm CVC Asia Pacific, Packer netted close to 16 per cent of TEN through his traditional investment bank, UBS.

By last night the bank was believed to be moving towards 20 per cent of the company, with a stake potentially valued at $313 million.

The move surprised many given James Packer has shown more interest in casinos and telcos, shuning the industry his father became so synonymous with.

But while TEN pitches for a broader audience with MasterChef and a push for more news and current affairs, Packer is said to be a fan of TEN’s glory days with its focus on younger demographics.

TEN’s share register has been wide open since Canadian broadcaster CanWest was forced to dump its majority 50 per cent stake after hitting debt troubles in the financial crisis.

Media reports suggest that Packer family interests would be satisfied with a 20 per cent stake in TEN and representation at the board table.

Source: The Age, The Australian

27 Responses

  2. @Greg – mate, dont make comments when you dont know what you are talking about. ONE HD has been an absolute and paramount success. Its not a failure by any stretch of the imagination. Ask yourself this question – if it was a failure/disaster, why would the person who has a majority share in the main competition (Fox Sports) want to all of a sudden gain an interest? Think before you type, you wont look foolish next time.

  3. I think he knows when next yrs ratings yr comes around and ten has 11, their share is going to be much higher. You would expect 11 to take around 4- 6 percent per night, and it will be interesting whether go, gem, mate and 72 loose viewers to 11

  4. @ Jason – to save us reading the book, who does it blame for killing 9?

    I’m really annoyed – I prefer channel 10 out of the 3 commercial FTA stations.
    (Well, I don’t actually watch anything on 7 any more, and watching Sherlock this week made it the first time I’ve watched anything on 9 in years!)

    We don’t need channel 10 ruined, they were looking good.

  6. None of you know if Jamie wrecked or saved 9 so this raid seems impossible to guess other than the share price is low, FTA tv is rebounding andf casinos etc around the world are struggling. Feel sorry for Ten staff if he takes over and starts culling numbers.

  8. Just to clarify one point- One HD actually turned a significant profit in its first year- despite having to pay up front for many sporting rights.

    It’s doing exactly what Ten want it to do- and when analogue’s switched off and they can put AFL, etc on there exclusively, it’ll go gangbusters.

  9. ahhhh so many analysts with no idea. 9 Didn’t do very well when his old man past as his old man had appointed his PBL henchmen towards the end which he couldnt remove at the time. His exit, which was a big risk, put 9 back on track eventually (mind you he doesnt own but it would have been a family tragedy had those few PBL execs been allowed to stay). For all of you that are saying his casino venture didn’t work out, well he did lose out during the GFC however those investments have now paid massive dividends and he is well ahead now from where he started.

    I think James is pretty damn savvy actually and Ten should be nervous as he wouldn’t be doing this just to capitalise on a cheap share price (well that would be one reason).

  11. This could either be a good thing or a bad thing, he left the 9 network in shambles and ten should be weary of James Packer. My thinking is the reason he is interested in Network 10 now is because his casino and gambling venture has not gone aswell as he had hoped and he has lost money in propery and the GFC would not have helped. So my thinking is that he is looking for a safer more stable option like media again. ONE hd could be another reason as other bloggers have already mentioned. @ greg ONE HD has been a success for Nertwork TEN, if your talking ratings wise being a disaster well maybe but that is because of the analogue signal being still on. Once the analogue singal is turned off all of the digital channels will be more competitive and yess diminishing the networks primary channel share but that is irrelevant because they will just add up the 2 or 3 scores depending on how many channels each network has and that will be that. My guess Greg is that you are from a old way of thinking about media this is the digital age not the analogue age. If commercial tv networks are to make more money and be more successful then diversity is the key and we are on the right track so far if you want a example look at FOXTEL, they have many neich channels and they are reaping the rewards. the neich channels are a valid and strong reason for their success 24% of the country not withstanding.

  12. @ CatFan….I sooo agree…..Nine did not do so well with him at the helm after his Dad passed…….I have to ask Why?!?!?
    And does he not still have fingers in the pie with ch.9……can he dip his toes in both TV channels…..????????

  13. Well I’m with Packer… I’m a fan of 10 when it was about fresh and fun.. ever since Masterchef arrived, they seemed to back away from that alternative fun channel they offered.

    With that said 11 (10’s new channel) looks like it is going to be a strong fave of mine, coupled with 7 (and 7TWO) and 9 (and GO!). Probably will hardly ever watch 10 again when 11 arrives.

  15. It’s sensible for Ten to get out of their cheapskate news strategy, as ratings for the moronic Neighbours show have been on the decline, yet Ten still have to keep it to meet local content rules. Since Packer basically owns Fox Sports, this is more about the AFL rights that come up for renewal next year and the fact that Ten’s share price is currently as cheap as it can get.

    The best thing he could do is sack David Mott, who’s responsible for the huge disaster of One HD that’s losing Ten a lot of money, for the disaster of the Comm Games that should’ve been handed to Foxtel and for taking far too long to launch the 11 channel.

  17. Could Packer be doing this to try and get Seven out of Consolidated because one would assume if it got enough Ten shares, Seven would be required to divest it’s interests in Consolidated.

  19. This does not bode well for Ten’s 2011 news plans if Packer is, indeed, a fan of Ten’s lean and mean operating model of the past. If news does not get results for Ten quickly I can see Packer exerting influence on the board to dump it in favour of a cheaper option.

  25. With Eleven launching next year 10 should be doing much better than it has in a while, quality product and better marketing than all the other digital channels in my opinion.

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