Shareholders to decide TEN’s future

Network TEN will hold its Annual General Meeting today, in what we traditionally view as the “silly season.”

But things are very serious in TEN land and the meeting promises more drama than an episode of The Bold & the Beautiful.

In the wake of finishing as the fourth network, behind the ABC, shareholders will now be asked to approve a deal that could hand over security of all the media group’s assets to three of its billionaire shareholders -James Packer, Lachlan Murdoch and Bruce Gordon – in return for the trio guaranteeing its new $200 million loan.

Gina Rinehart is understood to have voted in favour of the proposal, but is not a participant.

The first time the billionaires backed a $200m debt facility was in mid 2012.

Two years later, after a $285m loss,  another is on the table.

There is also pressure on Hamish McLennan to resign as chairman of real estate classified company REA Group, following the resignation of realestate.com.au CEO Greg Ellis. REA is majority owned by News Corp Australia and McLennan joined the REA board early last year as a News appointment, worth $250,000 a year.

But there is criticism this makes him a ‘part time CEO’, at some $2m a year, of a network needing fulltime attention and that shareholders vote down TEN’s incentive schemes for him.

There is also speculation that News Corp may buy TEN, but the Australian Shareholders Association said it was told by chairman Lachlan Murdoch that News Corp would not do so.

The AGM gets underway at 11am at Wesley Theatre, 220 Pitt Street, but photography / filming and recording devices are all banned.

Fairfax also reports, “The network may be able to fast-track shows from the US and distribute them on several platforms, but we have been informed that the ability to webcast Wednesday’s shareholder meeting in real time is beyond it.”

Updated: TEN advises Fairfax is incorrect and the AGM will be webcast.