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

IsoWhey launches #YouGotThis Weight Management Campaign Via Indie Agency Urban
  • Advertising
  • Campaigns

IsoWhey launches #YouGotThis Weight Management Campaign Via Indie Agency Urban

Australia’s leading health and wellbeing brand IsoWhey has launched its latest national campaign, ‘#YouGotThis’. Created by Urban, the campaign highlights the real-life struggles Australians face on their weight management journey. A journey made easier through perseverance, and a little help from IsoWhey. The #YouGotThis campaign is IsoWhey’s biggest marketing investment to date, with executions running […]

Taking A stand? Just Do It…Maybe
  • Marketing
  • Opinion

Taking A stand? Just Do It…Maybe

In this guest post, creative and strategy director at WE Buchan, David Coupland (pictured below), takes a look at the fallout from Nike’s Colin Kaepernick campaign and says what it also does is show the importance brands now play in our lives… Nike’s decision to feature Colin Kaepernick as the face of their 30th anniversary “Just Do It” campaign […]

Opinion

by B&T Magazine

B&T Magazine
How To Optimise Branded Keywords
  • Marketing
  • Opinion

How To Optimise Branded Keywords

In this guest post, CEO of Delacon, Michael Center (pictured below) talks the value of branded keywords for marketers and offer his tips on getting the best from yours… Branded keywords are an essential part of the digital marketing strategy for many large businesses. Trading on the recognition and equity of a brand’s name, some of the country’s […]

Opinion

by B&T Magazine

B&T Magazine
OLYMPUS DIGITAL CAMERA
  • Marketing
  • Opinion

Expertise First, Influence Second: When Influence Is A By-Product Of Expertise

In this guest post, Taryn Williams, CEO and founder of influencer and creative talent marketplace theright.fit, explains why influence should be a by-product of success, not the foundation for it… Like any form of advertising and promotion, influencer marketing is not without its controversies. Earlier this year Australia’s Federal Minister for Health, Greg Hunt, ordered […]

Opinion

by B&T Magazine

B&T Magazine
Ford & Facebook Invite Aussies To Personalise 2018 Mustang With New In-App Experience
  • Campaigns
  • Marketing
  • Technology

Ford & Facebook Invite Aussies To Personalise 2018 Mustang With New In-App Experience

Ford Australia has unveiled a new innovation that showcases the iconic Ford Mustang through a collaboration Facebook and Instagram. The interactive campaign invites Facebook and Instagram communities to take part in a live poll to identify Australia’s ultimate Mustang design. Targeting performance car fans, along with design lovers and image-conscious consumers, Ford and its partner […]