Ten goes into ASX trading halt as financial woes grow
Financially troubled TV broadcaster Ten Network has this morning gone into a trading halt on the ASX.
The move came after it was reported over the weekend that the three backers of Ten’s expiring $200m loan facility had declined to extend their backing beyond the end of the year.
Ten: planning dramatic cost cuts
Shareholders James Packer, Lachlan Murdoch and Bruce Gordon have been guaranteeing the CommBank loan. But in April, they signalled that they might not get behind the loss-making network’s new call for a bigger $250m loan.
The network is set to announce a major cost-cutting program while it also attempts to renegotiate its expensive US studio output deals. However, in April it warned the market there was “material uncertainty” about the company’s future.
Ten’s share price had declined to just 16c by the end of last week | Source: Google Finance
Before today’s trading halt, Ten’s shares were trading at just 16c, valuing the entire business at less than $60m.
According to the ASX statement, Ten’s shares could be suspended until Thursday, “pending the release of an announcement”.
Negative investor sentiment about the television sector has also hit other stocks in the last few days.
Last week saw the share price of Seven West Media decline to 64c, taking the market capitalisation of SWM below $1bn for the first time.
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Is anyone surprised by this? A once magnificent example of good diverse television production has been descended upon by revenue raiders, cash cow graziers, and corporate bandits. A succession of know all know nothing producers, dilettantes, and self-appointed media experts strutted and capered, whilst bean counters chiseled away at the last few meters of the foundations of good television programming.
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Has anything Lachlan Murdoch every done worked?
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if the goal was to drive Ten into the ground to make it possible for News to buy it…then yes.
but that may be an optimistic outlook on Lachlan’s abilities
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Could have been the strategy, you never know… Rinehart in it for the long haul..?
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Not ‘could have been’ – this is a ploy by the 4 largest shareholders to bring the media ownership rules to the forefront and be passed through parliament in this years remaining sittings.
It’s got all the scent of pick up the asset for nothing and offload it in 3 years for a tidy profit.
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