Network Ten’s Billionaires Lost A Collective $1 Billion, As Murdoch & Gordon Circle Once Again

Network Ten’s Billionaires Lost A Collective $1 Billion, As Murdoch & Gordon Circle Once Again
SHARE
THIS



You’d think Network Ten’s Pyrmont HQ was built on an Indian graveyard judging by the bad luck the broadcaster has had in recent times, culminating in it going into receivership yesterday.

Following yesterday’s news of the arrival of investment firm KordaMentha to run the joint, many analysts predict Ten’s shares (valued at 16 cents) are now worthless leaving its billionaire shareholders Jamie Packer, Lachlan Murdoch, Bruce Gordon and Gina Rinehart a collective $1 billion out of pocket.

When most of the quartet were buying into the network, circa 2010, Ten’s shares were hovering around the $3-mark.

(As an aside, Seven’s shares rose three per cent yesterday and Nine’s five per cent).

Packer, who owns 7.7 per cent of the beleaguered network, had reportedly been trying to flog his shares for some time but found no takers. And it would appear James has all but done with Australian media for the time being.

Rinehart has apparently given up on her $172 million investment and walked away.

The four billionaires guaranteed Ten’s $200 million funding from the Commonwealth Bank. Sure, if Ten defaulted they’d have got stuck with the bill, however, they would have owned all of Ten’s assets.

On Tuesday, Murdoch and Gordon refused to guarantee the loan past December and yesterday the receivers were called in.

But it appears the duo have an ulterior motive and have hatched a plan to take the broadcaster private and give them ultimate control.

The fact that the company is in receivership means it can extricate itself from expensive content sharing deals with US networks CBS and 20th Century Fox reported to cost Ten $150 million a year.

Yesterday, in a change of substantial holding notice to the ASX, Gordon’s investment vehicle Birketu, which holds 15 per cent of Ten, announced a tie-up with Murdoch’s 7.5 per cent stake held in his private investment company Illyria.

The deal was reportedly hatched last Friday, before Tuesday’s announcement that Ten’s funding would no longer be guaranteed.

The association would give the two a 22.5 per cent stake in Ten and as it’s not a merged entity then it doesn’t trigger the compulsory acquisition provisions in corporation law which come into effect once the 19.9 per cent threshold is breached.

Acting as an association also means there is no breach of the existing two-out-three cross media ownership laws.

However, in the letter of agreement to the ASX it made it clear that it does not constitute a move to take control of Ten and merely commits them to “negotiate and facilitate” a restructure.

The agreement between the two will come to nought if the media ownership laws aren’t changed and the administrators see no hope in Ten’s future and its wound-up and assets sold off.

Ten’s directors have said administrators Korda Mentha are working on plan to either sell or recapitalise the business. Bosses have also said it would be business as usual for the network as the administrators got to work. There’s a lot more to come.

Latest News

Masculinity Roasted In Clever New Ad
  • Advertising
  • Campaigns

Masculinity Roasted In Clever New Ad

Think masculinity means drinking a case without chundering? Well, rediscover it (& possibly yourself) with this top ad.

by B&T Magazine

B&T Magazine
WPP AUNZ Partners With Career Trackers Indigenous Internship Program
  • Advertising

WPP AUNZ Partners With Career Trackers Indigenous Internship Program

Advertising and marketing network WPP AUNZ has joined the Career Trackers Indigenous Internship Program as part of its commitment to a diverse workforce, and the creation of opportunities that inspire excellence. As part of the program, WPP AUNZ has welcomed its first three interns: Abi-Leigh Dillon (WPP AUNZ), Amy Mccutcheon (MediaCom) and Jacinta Evans (Ogilvy), […]

Taboo Goes On A Hiring Spree
  • Advertising

Taboo Goes On A Hiring Spree

Taboo has gone a hiring spree. And when it comes to sprees, that's far better than a shooting one or a farting one.

Luke Kelly Becomes A Partner At HBT
  • Advertising
  • Marketing
  • Technology

Luke Kelly Becomes A Partner At HBT

B&T's not sure what's with that twirly thing in the press photo, suffice to say a vortex to an alternate dimension?

Women In Media Profile: Alison Michalk
  • Media

Women In Media Profile: Alison Michalk

If B&T's Women in Media profiles were an animal they would be a gazelle or lioness, or even a lioness eating a gazelle.

by B&T Magazine

B&T Magazine
Grant Broadcasters Makes Several Changes To Senior Executive Team
  • Media

Grant Broadcasters Makes Several Changes To Senior Executive Team

Independent media company Grant Broadcasters has announced a number of changes to its executive ranks. Grant Cameron will move up to become non-executive chairman for the company, and Alison Cameron (pictured above) – currently the chief operating officer – will assume the CEO role. Dugald Cameron remains responsible for the family’s investment portfolio and is […]

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities
  • Advertising
  • Media

Shopper Media Group Partners With Mist To Offer New Tech & AI-Driven Capabilities

Australian retail out-of-home (OOH) business Shopper Media Group (SMG) has announced a partnership with AI-powered wireless networks provider Mist. The partnership will see SMG offer new WiFi, analytics and location-based services across the company’s portfolio of Australian shopping centres. Mist currently provides WiFi and location services using virtual Bluetooth LE technology to businesses across all […]

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account
  • Advertising
  • Media

Indy Agency This Is Flow Wins Cruiseco’s $5 Million Media Account

Travel organisation Cruiseco has announced the appointment of Sydney independent agency This is Flow (TIF) to handle its $5 million media account. This is the first time Cruiseco has appointed an agency, having managed its communications internally. Cruiseco is the largest and broadest distributor of cruise products in the Southern Hemisphere. With a membership base […]

Women In Media Profile: Naomi Shepherd
  • Media

Women In Media Profile: Naomi Shepherd

Need a Monday morning pick-me-up? You could stand naked next to the office fridge or read these inspiring words.

by B&T Magazine

B&T Magazine
APN Outdoor Takes Off With Queenstown Airport Contract
  • Advertising
  • Media

APN Outdoor Takes Off With Queenstown Airport Contract

Out-of-home media business APN Outdoor has won the tender for New Zealand’s Queenstown Airport. As part of the new agreement, APN Outdoor has flagged extensive development plans for Queenstown Airport’s advertising assets. The new contract adds Queenstown Airport to APN Outdoor’s existing portfolio of Auckland and Christchurch Airports. The media company will hire a South […]

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ
  • Media

Havas Secures Exclusive ‘Fight Of Champions’ Broadcast Rights With Foxtel For Australia & NZ

Havas Sports & Entertainment ANZ, a division of the broader global full-service agency Havas, has confirmed an exclusive deal with Foxtel to showcase the World Boxing Association (WBA) Welterweight Championship across the trans-Tasman. Billed as the ‘Fight of Champions’, Manny Pacquiao and Lucas Matthysse will square off for the WBA Welterweight belt this Sunday. Havas […]

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?
  • Media
  • Opinion

The Question On Everybody’s Lips At Cannes: How Did Tesco Win The Grand Prix Media Lion?

In this guest post, PHD’s Chloe Hooper (pictured below) analyses the campaign that claimed top honours in the Media category at Cannes this year. I sat in the auditorium as the Cannes Media Lion winners for 2018 were awarded. One thing became instantly clear to me: it is all about taking home Gold or the Grand Prix. […]

Opinion

by B&T Magazine

B&T Magazine
MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope
  • Advertising
  • Campaigns

MINI Australia Showcases New ‘Connected’ Vehicles Via Vizeum & Posterscope

An integrated campaign by Vizeum Melbourne for MINI Australia’s new ‘Connected’ vehicles will see digital out-of-home (DOOH) served via Posterscope’s Liveposter platform. Delivered centrally, the campaign will showcase the flexible qualities DOOH provides via multiple creatives targeted with specific data overlays such as location, traffic, time of day, and weather triggers such as rain. The […]

Women In Media Profile: Lisa Sheehan
  • Media

Women In Media Profile: Lisa Sheehan

The delightful Lisa Sheehan straps into B&T's "cage of truth" we actually prefer to call our Women in Media profiles.

by B&T Magazine

B&T Magazine
News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day
  • Advertising
  • Campaigns
  • Marketing
  • Media

News Corp, Storyful & Fox Sports Join Forces To Support AIME Hoodie Day

News Corp Australia, Storyful and Fox Sports have joined forces in support of 2018 AIME Hoodie Day with a creative advertising, PR, social media and editorial campaign across print, digital, and broadcast media. Fox League presenter Hannah Hollis (pictured above) fronts the AIME Hoodie Day campaign, conceptualised, designed and created by News Corp’s trade marketing […]