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Breaking News: Ten Accept CBS Offer, Rejects Gordon & Murdoch, Appeal Expected

CBS TEN

Following a bidding war for embattled network Channel Ten, creditors have today voted to accept American behemoth CBS’ revised offer, rejecting the rival bid from Australian shareholders Lachlan Murdoch and Bruce Gordon.

Just hours before the second creditors meeting – scheduled for this morning – CBS raised their offer for Channel Ten from $32 million to over $40 million.

The news comes one day after Mr Gordon lost his bid to block CBS’ acquisition of Channel Ten.

Sources state Channel Ten staff were overwhelming in favour of CBS’ offer, as many are ready for new management and new ownership.

Now that CBS’ offer has been accepted by creditors, the American broadcaster needs to receive court and Foreign Investment Board approval.

Christopher Hill, Ten’s Receiver and Manager states that the acquisition will secure the future of Ten as a notable Australian broadcaster:

“We believe the approval of CBS’ DOCA (deed of company arrangement) represents a positive outcome for creditors, and ensures the iconic broadcaster continues on a strong and stable footing under the ownership of one of the world’s largest media organisations”.

CBS’ revised offer was presented to Channel Ten’s administrators, KordaMentha, on Monday night which will pay $40.58 million to unsecured creditors, and increase the payout to Murdoch-owned 20th Century Fox to $12 million (from $3.42 mililon).

Reports state Gordon’s company, Birketu, is expected to place an appeal in the NSW Supreme Court, challenging Justice Ashley Black’s ruling which allowed today’s scheduled creditors meeting to go ahead. On the other hand, it may challenge the decision of KordaMentha in the Federal Court.

For further details on CBS’ revised bid, view a former ChannelNews article here.

Shares in Channel Ten have been in a trading halt since June.

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