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AFR: Time Warner Makes A$680 Mln Takeover Bid For Australia's Ten Network
[November 09, 2014]

AFR: Time Warner Makes A$680 Mln Takeover Bid For Australia's Ten Network


(dpa-AFX International Compact Via Acquire Media NewsEdge) NEW YORK CITY (dpa-AFX) - U.S. media and entertainment giant Time Warner, Inc. (TWX) has approached Australian broadcaster Ten Network Holdings Ltd. about a A$680 million, or $590 million takeover bid, the Australian Financial Review reported on Sunday.



Ten Network, the owner and operator of Network Ten, is an entertainment and news content companies, with assets across free-to-air television, online and digital platforms. Network Ten includes three free-to-air television channels - TEN, ELEVEN and ONE - in Australia's five metropolitan markets of Sydney, Melbourne, Brisbane, Adelaide and Perth, plus the digital platform tenplay.

According to the Australian Financial Review report, Time Warner senior vice-president James Burtson sent a letter on October 6 to Ten Network's investment banking adviser Citigroup Inc., expressing the company's interest in pursuing a possible acquisition of the commercial free-to-air network.


Time Warner is said to be prepared to explore an offer of A$0.25 per share for Ten Network that is not binding and only intended to facilitate further talks with the target company.

The letter reportedly said that any takeover bid would be made by Time Warner's cable division, Turner Broadcasting System. The bid would require the support of high-profile Ten investors Crown chairman James Packer, News Corp. (NWS, NWSA) co-chairman Lachlan Murdoch, WIN Corporation owner Bruce Gordon, and mining magnate Gina Rinehart, who control 40 per cent of the Ten Network stock.

Ten Network said last Thursday that it has appointed Citigroup to help in exploring a range of potential strategic options for the company.

According to media reports, another U.S. media group Discovery Communications Inc. (DISCA) has joined with Australian pay television company Foxtel to consider a bid for Ten Network. Foxtel is owned Australian telecommunications giant Telstra and News Corp.

In October, Ten Network reported a net loss after tax of A$168.3 million for the year ended August 31, 2014, narrower than net loss of A$285.0 million in the prior year. Television revenue for the year declined to A$601.7 million from $628.3 million in the prior year.

In August, Rupert Murdoch's 21st Century Fox (FOXA, FOX) said it has withdrawn its proposal to acquire New York-based Time Warner, citing that company's refusal to engage in talks, and the reaction in 21st Century Fox's share price in response to the offer.

In response, Time Warner said its board and management team are committed to enhancing long-term value and look forward to continuing to deliver substantial and sustainable returns for all stockholders.

TWX closed Friday's trading at $77.00, down $0.36 or 0.47 percent on a volume of 5.22 million shares.

On the Australian Securities Exchange, Ten Network is trading at A$0.28, up A$0.01 3.7 percent on a volume of 21.92 million shares.

Copyright RTT News/dpa-AFX

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