Companies

Sep 12, 2017

What you haven’t been told about the collapse of Channel Ten

Ten is now solvent and its future assured after CBS injected over $200 million to become one of the major secured creditors. But there's more to this story ...

Glenn Dyer — <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

In the four months up to its collapse in mid-June, the Ten Network suffered a multimillion-dollar shortfall in revenue and was losing $5 million a month as directors struggled to keep the company solvent and in business, while being increasingly harassed by shareholders Lachlan Murdoch and Bruce Gordon. James Packer had bolted from the trio guaranteeing Ten’s key financing vehicle, the $200 million revolving credit due on December 23. The share price plunged from 95 cents in mid-January to just 16 cents in the days before it was forced into administration by threats of legal action against the then-board from Messrs Gordon and Murdoch.

All in all, a second report to creditors from Ten’s administrator KordaMentha paints a picture of a company desperately trying to stay alive, without any help whatsoever from two key shareholders -- who now want to gazump CBS and take over over Ten using little if any of their own money.

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3 comments

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3 thoughts on “What you haven’t been told about the collapse of Channel Ten

  1. AR

    With apologies to Birley Shassey, not a Midas so much as “… a spider’s touch, Cold Digger”.

  2. 2bobsworth

    Lord Voldemort is waiting ….

  3. Geoff Thomas

    In all of the media coverage of the CBS bail out not one “respected source+ has noted that it will actually increase competition in the free to air television industry. Consider parties like Seven and Fairfax who are rumoured to be considering a merger. The will be over the moon at the prospect of competing with a CBS owned Ten Network. As for Murdoch and Gordon, completion is a socialist plot. Roll on CBS but keep Australian content rules firmly in place.

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