Foxtel to take 15 per cent of Ten and launches capital raising, also buying stake in MCN
Ten and Foxtel have announced their long-awaited deal that will see the pay-TV network take a 15 per cent stake in Ten with the free-to-air company set to buy a 25 per cent interest in Multi Channel Network.
Ten will also have an option for two years to become a 10 per cent shareholder in Presto, the streaming firm jointly owned by Foxtel and Seven West Media.
Foxtel will pay $77m for the Ten shares, valuing each share at $0.15c, with a Foxtel representative joining the Ten board.
That was conveniently cheap, hey Lachy?
Why did the TEN board agree to 15 cents? TEN is at 26 cents – its highest level YTD, and the prospects look reasonable to good. FOXTEL got it at a 42% discount to the market.
Can they just get it over with and merge already? It’s taking longer than a Masterchef elimination.
Remember Ten was worth $1.7 billion when Lachlan walked in the door and most recently about $600 million, and now for just $77 million + Lachlan’s (already written down for trust structure purposes) interest Murdoch (Foxtel) get the whole thing. With Murdoch (Foxtel) getting control for virtually nothing, Ten loses it’s takeover premium (no one else could or would possibly buy it now) and the only way Ten shareholders will benefit is if Ten pays big dividends down the track and that would seem a remote possibility.
By the way, it would seem that terribly generous $77 million injection by Murdoch (Foxtel) finds it’s way back to Murdoch (Foxtel) very,very quickly. Take a good hard look at where the money will go, it’s not out of Murdoch (Foxtel)’s Dollarmite account for very long at all.
Sales department gone, Ten news will be next, ending up as something coming out of NewsCorp (like Meet The Press is now) or packaged by Sky News and aired on Ten.
If this Ten-Murdoch ‘claytons’ takeover goes ahead it makes a mockery of the Broadcasting Services Act, Corporations Law, ACMA, ACCC, ASX and ASIC. The MEAA will be toothless. As for the Minister for Communications, Malcolm Turnbull will be shown up as a complete Murdoch stooge if this goes ahead.
Gina Rinehart is now a laughing stock, might be smart enough to dig a few big holes in the ground but this episode shows her to be nothing but a complete fool business wise (nobody even mention Fairfax). As for silly old Bruce Gordon… just wind down WIN, write off your Ten losses and enjoy Bermuda old fella.
Murdoch plays a long game.. from $1.37 a share (for 9%) driven down to $0.10 (for another 15%). Well played.
You’re funny Paul
Only a matter of time before the Murdochs turn TEN into a FOX NEWS.
Lachlan did well … send Ten down the gurgler so dad could pick it up for a steal.
‘a seat at the SVOD table’
Maybe a small seat at the kids table, out on the balcony in the rain.
Unless you’re cooking the meal, serving the food and eating the biggest portion , no point being at the table
One day, could a player like Netflix buy a fta channel and could it be beneficial for them..?