Foxtel Invests in TEN

SYDNEY: In an effort to raise capital, Ten Network Holdings has issued A$77 million ($60 million) in new shares to Foxtel, giving the pay-TV platform a 15-percent stake in the broadcaster.

TEN has also tapped Multi Channel Network as its sales rep for its TV and digital inventory as it looks to up its share of the advertising pie, and is taking a 24.99 percent share in the company. It also has the option to become a 10-percent shareholder in the streaming service Presto. In the period prior to exercise of the option, TEN will provide selected programming content, and a limited amount of contra advertising, to Presto. Alongside the A$77 million from Foxtel, Ten expects an additional A$77 million from existing shareholders who are being offered shares at the same price as the Foxtel deal.

"Today's announcement represents an important milestone for TEN and the conclusion of the strategic review process initiated by the Board last year," said TEN executive chairman and CEO Hamish McLennan. "It positions TEN to drive long-term value for shareholders."

He continued, “The Board believes the agreements with Foxtel and MCN will materially enhance TEN’s business and better equip it to respond to the challenges of the ever-changing media and advertising landscape. We welcome Foxtel’s proposed investment and we are confident this proposal will drive value for all of TEN’s shareholders. By joining forces with MCN, TEN will gain new efficiencies, improved data capability and provide broader integration opportunities for its advertising clients. The combined sales operation will provide advertisers a new way to reach consumers across all video content distribution platforms.”

Foxtel’s CEO, Richard Freudenstein, added, “We believe our proposed investment in TEN is a win-win for TEN and Foxtel. With Foxtel’s local knowledge and expertise, and MCN delivering synergies and improved advertiser access, we are confident that this proposal delivers a robust long term solution for a revitalized, competitive and profitable TEN.”