Reports: Discovery and Foxtel lower their bid for Network Ten

TenDiscovery Communications and Foxtel have revised their bids for embattled broadcaster Network Ten, according to media reports.

The Australian Financial Review reports, the new offer is lower than the original 23 cents per share offer, lodged in December, and comes after major shareholder Bruce Gordon thwarted an initial bid by wanting to retain his shares.

The new offer, reports The Australian, is thought to enable Gordon, who owns a 14.9 per cent of the TV, to maintain his holding and instead sees Foxtel and Discovery buy less than 100 per cent of the shareholder register in exchange for Ten’s key assets, such as their television licences, spectrum and studios.The deal is also thought to allow major Ten shareholders Lachlan Murdoch and James Packer, who together own around 18 per cent of Ten, to sell their shareholdings.

The troubled TV Network began the process of looking for potential suitors back in November with Time Warner and Discovery/Foxtel both thought to be interested. 

Major Ten shareholder Bruce Gordon in January moved to block a potential $590m Discovery/Foxtel bid for the network in favour of his own alternative proposal which would have seen him put up his own debt proposal giving him more control over the embattled commercial broadcaster.

Ten declined to comment this morning on what it described at “speculation.”




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