Excellent news this morning with CBS having been announced as the new owners of Network Ten.
Under the deal CBS will refinance Ten’s existing debt, including a $200 million loan to Commonwealth Bank and guarantor fees of about $30 million owed to James Packer, Mr Murdoch and Mr Gordon, and will implement a deed of company arrangement, according to KordaMentha. Creditors will be given the chance to vote on the deal at the second creditors’ meeting.
CBS will also provide “immediate financial support to ensure continuity of operations” at Ten.
CBS will also launch “CBS All Access” in Australia, its subscription video on demand service, it announced. CBS already has a 33 per cent stake in digital channel Eleven. This deal will see it take over Ten’s digital terrestrial channel, One, Eleven and TenPlay.
Armando Nunez President, CEO of CBS Studios International, commented, “CBS recognises the significance of Ten in the Australian broadcasting community. We are committed to the efficient, reliable and successful turnaround, operation and development of Ten to support continued growth in Australian media”.
Paul Anderson, CEO of Ten, commented, “CBS and Ten have had a strong relationship for a number of years; we are very excited about further developing that relationship with CBS as an owner and strength that they will provide to the Company at this critical time”.