Rupert Murdoch’s 21st Century Fox could end up with a fairly small payout as a Network Ten creditor unless it agrees to a new content deal with the free-to-air broadcaster’s new owner.
According to a report by Ten administrators Korda Mentha, Fox’s debt claim as a creditor is valued at $195 million. However, the report noted that Fox will only receive $3.4 million if it fails to renegotiate its content contract with Ten.
This possible outcome could add further salt to the wounds of the Murdoch family. Lachlan Murdoch’s joint bid with Bruce Gordon for Ten was the overwhelming favourite once the Australian Competition and Consumer Commission (ACCC) announced it would not oppose the offer.
However, in a shock move, Ten’s receivers (PPB Advisory) and administrator (Korda Mentha) made the decision to instead hand over the reins to US media giant CBS.
The KordaMentha report comes after the administrator announced on the ASX yesterday that CBS has provided a loan of around $142.7 billion to refinance the secured debt of Ten, including shareholder guarantor fees.