Rumours of Foxtel, Discovery eyeing TEN.
Update: More takeover talks as TEN confirms "a number of potential strategic options have been considered."
- Published by David Knox
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- Filed under News
The latest rumours on a TEN takeover suggest Foxtel and Discovery are considering a takeover bid.
It follows recent chatter of Foxtel and US-based Providence Equity Partners.
Fairfax suggests Foxtel could take a 14.9% stake in the network below the 15% mark to avoid falling foul of media ownership laws.
Sources said TEN adviser Citi contacted a growing number of interested parties last week, ahead of an informal deadline of late November set for potential bidders. Goldman Sachs is believed to be advising the $22B giant, Discovery.
The Australian Financial Review suggests Lachlan Murdoch and James Packer would be willing sellers, but Bruce Gordon’s intentions are less clear.
Fairfax Media also met with TEN management in October. Earlier this week Gina Rinehart resigned from the TEN board.
Last week TV Tonight revealed Foxtel and TEN’s first production co-commission, a locally produced Gogglebox would air on both platforms on consecutive nights.
A Foxtel spokesman declined to comment on reports.
TEN Statement:
Ten Network Holdings Limited (ASX:TEN) (‘TEN’ or the ‘Company’) notes recent press speculation in relation to potential transactions involving the Company.
TEN has appointed Citi to assist in assessing a range of potential strategic options for the Company.
TEN notes that while a number of potential strategic options have been considered to date, there is no guarantee any transaction will eventuate.
TEN will notify the market in the event that further disclosure is required in accordance with its continuous disclosure obligations under the ASX Listing Rules.
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3 Responses
@Pertinax! That does not sound bad too me! If what you say is true. Bring on the merger , I say. We need competition on the FTA landscape.
They already have a deal with Fox. How many Fox shows currently rate over 500K in Aus?
Ten will be the Prime (NZ) of Australia in no time!
The plan would be for Discovery to take over, Foxtel to get one seat on the board. But Discovery’s board members would follow Foxtel allowing them to effectively control Ten without the ACCC being able to stop them.
Foxsports and Ten would do PayTV/FTA deals for sport so they get a share of stuff covered by the anti-syphoning rules. They would take major sports away from Nine and Seven. They would also use their position to drive down what the sports and players get. Like with the whole Super League thing where the NRL ended up getting $1b less than the AFL for comparable rights packages. This is what the ACCC most wants to stop.
They have expressed interest in broadcasting Sky News on a secondary channel to increase its reach and influence.
Long term 21 Century Fox will do output deals with Ten that subsidise Ten to compete with Seven and Nine while minimising tax payments.