US TV giant CBS to buy troubled Ten Network, creating potential streaming rival to Netflix, Stan – Australia News

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August 28, 2017 13:25:45

The troubled Ten Network will be purchased by the US-based broadcasting giant CBS.

Key points:

  • A hold-up on media law reforms in the Senate has hampered a joint bid for Ten from Lachlan Murdoch and Bruce Gordon
  • US-based CBS, which is a major content provider of Ten, instead emerges as winning bidder
  • CBS will launch subscription streaming service ‘CBS All Access’ in Australia to counter Netflix and other providers

Ten Network’s receivers, managers and voluntary administrators have confirmed that CBS has entered into a binding agreement to buy the broadcaster’s business and assets.

The winning bid from CBS comes after the Australian Competition & Consumer Commission (ACCC) said it would not oppose a joint bid by media magnates Lachlan Murdoch and Bruce Gordon to buy Ten.

However, the bids from Mr Murdoch and Mr Gordon were reliant on changes to Australian media law being passed by the Senate.

CBS is currently a major content provider to Ten and the delay in Australia’s media law reforms made it the preferred bidder over the Murdoch/Gordon proposal.

Ten was placed into voluntary administration in June after its billionaire creditors Mr Murdoch, Mr Gordon and James Packer backed away from guaranteeing a new $250 million line of credit.

The deal for CBS to buy Ten requires the approval of the Foreign Investment Review Board.

CBS is listed on the New York Stock Exchange and is valued at US$28…

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