US network CBS will purchase the Ten Network (ASX: TEN), ending a bid by billionaire media moguls Lachlan Murdoch and Bruce Gordon to buy the ailing broadcaster.
CBS announced the deal through the New York Stock Exchange saying it had entered into a binding agreement to acquire the business and assets of the Ten Network.
The US Network is a key content provider to Ten and the deal is a major blow to Murdoch and Gordon who were believed to be closing in on buying the Australian network over the weekend.
Administrators KordaMentha and receivers PPB Advisory confirmed the deal which will be funded by a refinancing of existing secured debt arrangements including shareholder guarantor fees in full and a Deed of Company Arrangement that will be put to creditors.
"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," says Ten Receiver and PPB Advisory Partner, Christopher Hill.
"The receivers and administrators will work closely together to ensure that operations continue uninterrupted while the transaction is finalised," says administrator Jarrod Villani of KordaMentha Restructuring.
"As part of the agreement to purchase the Network Ten business, CBS will provide immediate financial support to ensure continuity of operations ahead of the upcoming meeting of creditors."
Just last week, the competition watchdog cleared a proposed takeover of the Ten Network by billionaire investors Lachlan Murdoch and Bruce Gordon, leaving the two media moguls as the likely owners of the struggling broadcaster.
Ten went into voluntary administration on June 14 and the Australian Competition and Consumer Commission (ACCC) announced it would not oppose Murdoch and Gordon's joint bid to take 50 per cent each in Ten through their respective investment vehicles, Illyria and Birketu.
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