TELEVISION BROADCASTING – AUSTRALIA

KordaMentha’s Ten role raises conflict issues

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Original article by Damon Kitney
The Australian – Page: 18 : 19-Jun-17

The appointment of Korda­Mentha as administrator of Ten Network is under scrutiny, as the insolvency firm has been acting as an adviser to the free-to-air broadcaster since early 2017. This may breach rules which prohibit an insolvency practitioner from becoming administrator to a company they have had a professional relationship with in the previous two years. The issue is expected to be examined by the Australian Restructuring Insolvency & Turnaround Association.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, AUSTRALIAN RESTRUCTURING INSOLVENCY AND TURNAROUND ASSOCIATION, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Murdoch, Gordon in Ten deal

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Original article by Mitchell Bingemann, Darren Davidson
The Australian – Page: 17 & 27 : 15-Jun-17

Communications Minister Mitch Fifield says the Ten Network’s descent into voluntary administration has demonstrated the need for cross-media ownership reforms. Meanwhile, the struggling free-to-air broadcaster could potentially be privatised after shareholders Lachlan Murdoch and Bruce Gordon joined forces to develop a plan to refinance Ten. Their combined stake in Ten exceeds 22 per cent, but the joint venture arrangement does not breach media ownership or takeover laws.

CORPORATES
TEN REN TEA (AUSTRALIA) PTY LTD, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, NEWS CORPORATION – ASX NWS, WIN CORPORATION PTY LTD, FOXTEL MANAGEMENT PTY LTD, AUSTRALIAN LABOR PARTY, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, KORDA MENTHA AND COLLEAGUES PTY LTD, 21ST CENTURY FOX INCORPORATED, CBS CORPORATION, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Ten board mulls putting network into administrator’s hands

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Original article by Max Mason
The Australian Financial Review – Page: 1 & 18 : 14-Jun-17

Ten Network’s shares went into a trading halt on 13 June 2017, pending a board meeting to discuss the free-to-air broadcaster’s future after three key shareholders elected not to guarantee a new loan facility. KordaMentha is expected to be appointed as administrator following the decision by Lachlan Murdoch, Bruce Gordon and James Packer, who had guaranteed the current $A200m loan facility that expires in late 2017. Murdoch and Gordon have been touted as potential bidders for Ten if cross-media ownership laws are relaxed.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MOELIS AND COMPANY, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, WIN CORPORATION PTY LTD

Keeping Ten afloat relies on new deals

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Original article by Max Mason
The Australian Financial Review – Page: 11 & 16 : 13-Jun-17

Moelis & Company is said to be confident of securing a new $A250m financing deal for Ten Network after Bruce Gordon, James Packer and Lachlan Murdoch chose not to back it. They had guaranteed the network’s existing $A200m loan facility, which expires in late 2017. Murdoch and Gordon are seen as potential buyers of Ten if it goes into receivership, although they would require changes to cross-media ownership laws. Meanwhile, Ten is seeking to reduce costs by renegotiating US content deals with CBS and 21st Century Fox, which are worth about $A150m a year.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, MOELIS AND COMPANY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NETFLIX INCORPORATED, UBS HOLDINGS PTY LTD, WIN CORPORATION PTY LTD, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

Reform package boosts shares

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Original article by Darren Davidson
The Australian – Page: 24 : 9-May-17

The Federal Government’s latest media reform proposals prompted a rally in the share prices of listed media groups on 8 May 2017. In addition to abolishing the "reach rule" and the "two out of three rule", the Government plan to replace TV broadcasting licence fees with an annual spectrum fee and ban gambling advertisements during live sports broadcasts prior to 8:30pm. Macquarie Group says the proposed reforms are positive for TV networks.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, MACQUARIE GROUP LIMITED – ASX MQG, TEN NETWORK HOLDINGS LIMITED – ASX TEN, SEVEN WEST MEDIA LIMITED – ASX SWM, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, SOUTHERN CROSS MEDIA GROUP LIMITED – ASX SXL, PRIME MEDIA GROUP LIMITED – ASX PRT, WIN CORPORATION PTY LTD, FAIRFAX MEDIA LIMITED – ASX FXJ, NEWS CORPORATION – ASX NWS, APN NEWS AND MEDIA LIMITED – ASX APN, TPG CAPITAL LP, FACEBOOK INCORPORATED, GOOGLE INCORPORATED

Government considering $100m TV licence fee cuts

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Original article by Max Mason
The Australian Financial Review – Page: 29 : 1-May-17

The Australian Government’s May 2017 Budget may include broadcasting licence fee relief for free-to-air TV networks. Options that are said to be under consideration include abolishing the existing revenue-based licence fee or replacing it with a flat fee. The licence fee reforms are intended to offset the impact of a proposed ban on gambling advertisements during live sports broadcasts. The anti-siphoning list may also be revised to compensate pay-TV groups for the loss of gambling ad revenue.

CORPORATES
AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, TEN NETWORK HOLDINGS LIMITED – ASX TEN, NICK XENOPHON TEAM, ONE NATION PARTY

Murdoch holds the key to re-shaping television

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Original article by Aaron Patrick, Max Mason
The Australian Financial Review – Page: 36 & 37 : 1-May-17

Ten Network’s market capitalisation has slumped to just $A99.7m in the wake of a recent profit warning. The 7.7 per cent stake held by News Corporation’s co-chairman Lachlan Murdoch is now worth just $A7.7m, and there is speculation that News Corp ultimately wants to acquire the struggling TV network. Ten is seeking to renegotiate or terminate its content deals with CBS and 21st Century Fox, amid declining viewership of US TV shows in Australia. Ten also faces a deadline to repay or roll over a loan facility that has been guaranteed by Murdoch, James Packer and Bruce Gordon.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, NOVA ENTERTAINMENT PTY LTD, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, CITIGROUP PTY LTD, WIN CORPORATION PTY LTD, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, YOUTUBE INCORPORATED, INSTAGRAM LLC, DISCOVERY COMMUNICATIONS INCORPORATED, REA GROUP LIMITED – ASX REA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CCZ STATTON EQUITIES PTY LTD, ITV NETWORK LIMITED, McKINSEY AND COMPANY, PROSIEBENSAT.1 MEDIA AG

Ten review to cut costs in ‘every dark corner’

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Original article by Mitchell Bingemann
The Australian – Page: 21 : 28-Apr-17

Ten Network has posted a 2016-17 interim loss of $A232.2m and advised that it expects to book a full-year underlying EBITDA loss of between $A25m and $A30m. CEO Paul Anderson has revealed plans for an 18-month "transformation program" that will seek to increase revenue and aggressively reduce costs. Ten’s directors have conceded that there is significant doubt about its ability to continue as a going concern, with a $A200m debt facility due to expire at the end of 2017.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, FOXTEL MANAGEMENT PTY LTD, WIN CORPORATION PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA

Media companies next in line to feel full force of Amazon’s arrival

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Original article by Max Mason
The Australian Financial Review – Page: 12 : 27-Apr-17

Andrew McLeod of Morgan Stanley says Australian media groups as well as retailers are likely to be affected by Amazon’s entry into the domestic market. He says retailers accounted for 20-30 per of overall advertising expenditure in 2016, and competition from Amazon may prompt local retailers to reduce their ad spend. McLeod adds that retailers are among the biggest source of ad revenue for TV networks, and the "Amazon effect" could prompt some retailers to shift more of their ad spend from traditional media to online.

CORPORATES
MORGAN STANLEY AUSTRALIA LIMITED, AMAZON.COM INCORPORATED, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, JB HI-FI LIMITED – ASX JBH, MYER HOLDINGS LIMITED – ASX MYR, DAVID JONES LIMITED, WOOLWORTHS LIMITED – ASX WOW, COLES SUPERMARKETS AUSTRALIA PTY LTD, ALDI STORES SUPERMARKETS PTY LTD, AMAZON PRIME VIDEO, AMAZON WEB SERVICES LLC, AUDIBLE TECHNOLOGIES LIMITED

Abolish TV licence fees, tax Google and Facebook: Xenophon

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Original article by Max Mason
The Australian Financial Review – Page: 17 : 26-Apr-17

The Australian Government’s May 2017 Budget is tipped to include a further reduction in TV broadcasting licence fees. Independent senator Nick Xenophon says the fees are "anachronistic" and should be scrapped for free-to-air networks. Xenophon supports increased restrictions on gambling advertisements during live sports broadcasts, but he rejects suggestions that he has struck a deal with the Government on the issue. Xenophon also favours imposing a turnover tax on Google and Facebook.

CORPORATES
NICK XENOPHON TEAM, AUSTRALIA. DEPT OF COMMUNICATIONS AND THE ARTS, GOOGLE INCORPORATED, FACEBOOK INCORPORATED, AUSTRALIAN LABOR PARTY, AUSTRALIAN GREENS, ONE NATION PARTY