CBS Corp. To Acquire Network Ten In Australia

CBS Corp. will acquire Network Ten in Australia -- one of three major commercial broadcast networks in that country.

The deal includes the company’s core linear channel Ten; digital terrestrial television Eleven (which CBS already owns a 33% stake in); the digital channel One, and Network Ten’s digital platform, TenPlay.

Financial terms were not disclosed.

The Wall Street Journal says the company was in bankruptcy and CBS beat out two other media executives -- Lachlan Murdoch and Bruce Gordon. Murdoch is co-chairman of News Corp, while Gordon controls Australian TV network WIN Television.

Leslie Moonves, chairman/CEO of CBS, stated: “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.”

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CBS plans to use the deal to leverage the company’s launch of its digital subscription video on-demand service, CBS All Access, in the country. CBS recently announced plans to make CBS All Access available in Canada next year.

Reports suggest that Australian TV broadcasters have been struggling with a weak advertising market and competition from online streaming services, as they have in the U.S.

In early Monday morning trading, CBS stock was up 0.7% to $64.34.

 
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