The US media and entertainment giant CBS has agreed to buy the Ten network, which has been in receivership since July.
The surprise bid comes after billionaires Lachlan Murdoch and Bruce Gordon had appeared poised to buy Ten after getting clearance from the competition regulator last week, subject to media ownership laws.
The $28bn CBS Corporation, a long-term provider of content to Ten, owns CBS Television Network, cable networks, content production and distribution, television stations, internet-based businesses and consumer publishing.
Network Ten receiver and manager Christopher Hill said: “Network Ten has played a significant role in Australia’s media landscape over many decades, and the sale of the business to CBS will allow the iconic broadcaster to move into a new chapter on a strong and stable footing.”
The deal would also allow CBS to launch its streaming service CBS All Access in the Australian market, the US company said in a statement.
CBS said the purchase was part of its expansion plans in the English-speaking world.
The chairman of CBS, Leslie Moonves, said Ten was a strong brand with a 50-year history.
“We have been able to acquire it at a valuation that gives us confidence we will grow this asset by applying our programming expertise in a market with which we are already familiar,” he said.
The US network says it will supply its own content as well as produce Australian sport, drama, reality and news. The future of Australian soap opera Neighbours remains unclear.
The purchase is subject to regulatory approval.
It would not be the first time under foreign ownership for Ten. It was 50% owned by Canadian company CanWest until it sold its stake in 2009 after going broke.
Once known as the Simpsons network, Ten pursued a youth strategy in the 2000s and enjoyed success with Big Brother, Australian Idol and Neighbours. But when multi-channelling was introduced to free-to-air TV Ten lost its hold over the 16-to-30 demographic and began to falter.
The network entered into a period of instability with constant management changes and mass redundancies.
Ten chairman Lachlan Murdoch was brought in as CEO and made further changes to its strategy, but they failed to stabilise the network’s ratings or revenue, resulting in serious financial challenges this year.
Receivers PPB Advisory were appointed by the Commonwealth Bank in June over a $200m debt falling due in December, and no longer guaranteed by shareholders Murdoch and Gordon.
