The troubles that Australia’s Ten Network faced are hopefully a thing of the past as CBS, the U.S. based broadcasting giant is set to purchase the down-under network. Many officials at Ten have confirmed that CBS has signed a binding agreement to purchase the business and assets of the broadcaster.
CBS’s winning bid was made following an announcement by the Australian Competition & Consumer Commission (ACCC) would not block media magnates Bruce Gordon and Lachlan Murdoch from buying the troubled network. The bids by Murdoch and Gordon relied on Australian media law changes being passed by the country’s Senate, according to MSN.
Ten looked like they were going to be ok earlier in the year when Gordon, Murdoch, and James Packer guaranteed a new credit line of $250 million. However, they backed away from issuing the credit and in June the government placed Ten into voluntary administration. While the bid from CBS has been accepted to purchase Ten, the deal still needs to be approved by the Foreign Investment Review Board. The PPB Advisory and KordaMentha stated that the deal with CBS came from a rigorous sales process.
So, what does the deal with CBS mean? One thing, Australia will get a video on-demand service from the U.S. broadcaster. This will be huge for CBS and Ten. Over the decades Ten Network has been an important part of the broadcasting landscape, and once again, with the help of CBS, they could be looking at a new, and strong chapter for the iconic broadcaster.
KordaMentha’s Jarrod Villano stated that the main objective is to make sure that the broadcasting of Ten is uninterrupted during the finalization of the transaction. CBS is expected to proved financial support immediately to make sure creditors are taken care of, and continue daily operations.
On top of acquiring Ten, the deal will also give CBS control of digital channel Eleven, which 33 percent is already owned by the U.S. broadcaster, as well as digital channel One, and Tenplay, Network Ten’s digital platform. CBS feels confident going into the deal that they will be able to turn the troubled Ten around and make them a powerhouse in Australia again.
By launching CBS All Access, their video on-demand subscription service, in Australia, it will give people a new alternate service to Netflix, Amazon Prime Video, and Stan. Besides Australia, CBS is planning on making their subscription service in Canada in 2018. Now with the acquisition of the Ten Network, CBS is gaining a more global presence. There is no word, at this time, if any shows from Ten will make it to CBS broadcasts or their online service.
By Cletus Dillwood
Photo Courtesy Ten