Foxtel, Discovery close in on Ten
December 3, 2014
Australian pay-TV operator Foxtel and US cable giant Discovery Communications have signed off on a takeover bid for Ten Network, as the media company’s advisers Citi closed the sale process.
Ten failed to attract any other firm bidders in what is said to have been a tepid auction for the FTA network.
The offer values the broadcaster at between A$510 million (€350m) and A$664 million, with Foxtel set to take a 14.9 per cent stake – the maximum allowed under current cross-media ownership rules.
The move comes after Paul Mallam, who represented shareholder Bruce Gordon on the Ten board, resigned, amidst media reports suggesting Gordon would consider a Discovery-Foxtel offer.