Sky News is reporting that American largest free to air network, CBS is buying Australia’s Channel Ten. The Aussie network recently went into voluntary administration, but would likely continue with investment from CBS. If you’re not familiar with CBS, they’re responsible for some of your favourite shows like The Big Bang Theory, 2 Broke Girls, CSI, The Good Wife, Big Brother and many others.
Ten will be now owned and operated by CBS, who are already a stakeholder in Channel Eleven. Some CBS shows are already shown on Channel Ten, but the new deal opens the door for the full catalog to be shown in Australia.
CBS has many arms and you may also be familiar of their CBS Interactive arm, responsible for Gamespot, TechRepublic, ZDNet and Cnet.
It is now understood that CBS will launch their digital subscription video on-demand service, CBS All Access into Australia as part of the acquisition. This allows users to stream 9,000 episodes of their favourite shows, live TV and CBS originals. While Channel Ten has TenPlay, CBS All Access has a far greater list of supported devices including Apple TV, Android, Google Chromecast, iOS, Roku, PS4, Xbox and Windows 10. Recently, Google Home support was also added.
Channel Ten has now issued an official press release.
The Receivers and Managers (Christopher Hill, Phil Carter and David McEvoy of PPB Advisory) and the Voluntary Administrators (Mark Korda, Jarrod Villani and Jenny Nettleton of KordaMentha Restructuring) of Ten Network Holdings Limited (Network Ten) today announced that wholly owned entities of the New York Stock Exchange listed, CBS Corporation have entered into a binding Transaction document to acquire the business and assets of Network Ten.
CBS Corporation is currently a key content provider to Ten and operates businesses which span the media and entertainment industries, including the CBS Television Network, cable networks, content production and distribution, television stations, internet-based businesses, and consumer publishing. CBS Corporation is listed on the New York Stock Exchange, and has a current market capitalisation of -US$28 billion.
The Transaction contemplates an acquisition of Network Ten by CBS, which will be effected by way of a refinance of existing secured debt arrangements (including shareholder guarantor fees) in full and a Deed of Company Arrangement (‘DOCA’) that will be put to creditors at the second creditors meeting. Further details on the expected return to creditors and timing of the second creditors meeting will be provided by the Voluntary Administrators in their Report to Creditors to be released in the coming days.
The decision to enter an exclusive transaction deed with CBS followed a rigorous sales process run in conjunction with independent adviser, Moelis Australia Advisory Pty Ltd (Moelis).
Network Ten Receiver and Manager, and PPB Advisory Partner, Christopher Hill, said:
“Network Ten has played a significant role in Australia’s media landscape over many decades, and the sale of the business to CBS will allow the iconic broadcaster to move into a new chapter on a strong and stable footing.
Administrator Jarrod Villani of KordaMentha Restructuring stated: “the Receivers and Administrators will work closely together to ensure that operations continue uninterrupted while the transaction is finalised. As part of the agreement to purchase the Network Ten business, CBS will provide immediate financial support to ensure continuity of operations ahead of the upcoming meeting of creditors.