Big US Media Groups Lining Up To Have A Crack At Buying Ten Network
Time Warner has valued the Ten Network at around $680M according to the Financial Review.
The giant US media Company believes that privatisation is the way forward for the Ten Network.
Also looking to buy into the Ten Network is Discovery Communications who has teamed up with Foxtel to consider a bid. Foxtel is owned by telecommunications giant Telstra and News Corporation.
Time Warner senior vice-president James Burtson sent a letter on October 6 to Ten’s investment banking adviser Citi to “express our interest in pursuing a possible acquisition” of the commercial free-to-air network according to the AFR.
The letter to Citi managing directors Tony Osmond and Nick Bagot says Time Warner, which has a value of $US65 billion ($75 billion), is prepared to explore an offer of 25? a share for the company behind Offspring and The Bachelor Australia.
It specified the approach was not binding and “only intended to facilitate further discussions with you”.
The letter said any bid would be made by Time’s cable division, Turner Broadcasting System, and would require the support of high-profile Ten investors Crown chairman James Packer, News Corporation co-chairman Lachlan Murdoch, WIN Corporation owner Bruce Gordon and mining magnate Gina Rinehart, who control 40 per cent of the Ten stock.
“We believe privatisation is the most effective way to achieve the desired return to profitability of Ten, “Mr Burtson wrote.
“Building an international footprint for our networks business is a strategic priority for Turner and we are excited about the opportunity to acquire a strong media asset in an attractive ?geographic market.”
Time makes films such as the Harry Potter franchise and television programs including Game of Thrones, and owns cable channels such as CNN.
Ten is currently suffering from poor ratings and revenues making them vulnerable to a takeover.