Report: Seven & Nine offer 50c each for TEN share in TX Australia
TEN in a legal battle as Seven & Nine try to buy its share of transmission operation at a rock bottom price.
- Published by David Knox
- on
- Filed under News
Network TEN is locked in a legal battle with Seven & Nine over its share of transmission operation TX Australia.
TX Australia is a joint venture of the three networks to broadcast signal around the country.
The Australian Financial Review reports that under the shareholders’ agreement, a partner going into administration can trigger the other members buying it out.
Sources said TX Australia, encouraged by Seven, brought in PwC to value the business, coming up with a number of scenario models: one that valued TEN’s share at $1, valuing the entire business at $3, and another valuing it at more than $40 million, valuing the entire business at more than $120 million.
Documents have now been filed in the Supreme Court of NSW with a court hearing due on April 5.
A spokesperson for the competition watchdog said, “The ACCC is aware of the legal proceedings and the issues raised, and we are monitoring the situation.”
One Response
Fascinating to see how the industry are not only cutting costs internally, but seeking to cannibalise industry counterparts to keep their heads above water. All because they paid too much for current sport rights contracts. Does not bode well for any further increases in sporting rights.