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Network Ten Pty Limited

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Network Ten Pty Limited
Company typePrivate
IndustryMedia
Headquarters
Sydney
,
Australia
Area served
Australia, New Zealand
Key people
Beverley McGarvey (Chief Content Officer and Executive Vice President)
ProductsTelevision broadcasting, digital multichannels, video-on-demand platform
OwnerParamount Networks UK & Australia
ParentParamount Networks UK & Australia

Network Ten Pty Limited, operating under the name Paramount Australia & New Zealand, stands as a prominent Australian media enterprise based in Sydney. Its principal holding is Network 10, a commercial free-to-air television broadcaster. Previously traded on the Australian Securities Exchange, it has been owned by Paramount Networks UK & Australia since December 2019.

Assets

Originally centered on television broadcasting, Network Ten has expanded its portfolio across various media platforms over the last ten years. Its main business segments include:

Pre-1998

In April 1987, News Corporation divested its Network Ten stations in Sydney and Melbourne to Northern Star Holdings, linked to Frank Lowy's Westfield Capital Corporation, for $842 million. Later that year, Northern Star expanded by acquiring Ten’s Adelaide, Perth, and Canberra stations from Kerry Stokes.

By September 1989, Westfield exited the television sector by selling its stake in Northern Star at a $450 million loss to Broadcom and a banking group. The network encountered financial difficulties, including litigation from MCA over unpaid programming fees. Broadcom subsequently sold the Adelaide, Perth, and Canberra stations to Capital Television Holdings for $185 million and planned to return the network to profitability by 1991/92 through cost reductions.

Ernst & Young receivership took control of Northern Star in September 1990. The New South Wales Rugby League liquidated the network in May 1991. Later that year, Westpac acquired the East Coast metropolitan stations for $240 million.

On 30 December 1992, Westpac transferred ownership of Network Ten to Oltec Limited, controlled by Canadian media firm CanWest, with minority shareholders such as TNQ, Jack Cowin, John Singleton, and Liebler Media. Oltec was rebranded as Ten Group Limited in April 1993. CanWest also maintained a minority stake in New Zealand's TV3.

In November 1993, Ten Group secured a 50% interest in Capital Television Holdings. In 1995, majority owner Curran sold the Canberra station to Southern Cross Broadcasting despite legal challenges from Ten Group aimed at preserving its program supply contract. Capital accused CanWest of violating foreign ownership regulations.

Restrictions on foreign ownership constrained CanWest’s shareholding in Ten. By June 1994, TNQ held the largest voting interest at 40%, CanWest owned 15%, and AMP Limited possessed 5%.

Formation and Connection with The Ten Group

Ten Network Holdings (TNH) was founded in 1998 as a publicly listed company on the ASX, serving as the holding entity for Network Ten's assets. This structure allowed investors to gain exposure to The Ten Group Pty Ltd, the proprietor of the Ten television network. Initially, TNH controlled a 79% stake in The Ten Group, equating to a 39% economic interest, while Canwest held a 58% economic interest. In June 2007, Canwest converted its holdings into TNH shares, obtaining a 56% ownership in TNH and elevating TNH’s stake in The Ten Group to 99%, thereby streamlining the corporate framework. By February 2008, TNH secured full ownership after remaining shareholders exchanged their shares for TNH stock.

Divestment by Canwest

On 24 September 2009, Canwest divested its 50.1% interest in Ten Network Holdings for A$680 million to alleviate debt pressures amid Australia's media ownership regulations. Despite this transaction, Canwest subsequently collapsed the following year.

James Packer's Equity Acquisition

In October 2010, Consolidated Press Holdings, controlled by James Packer, obtained an 18% share in TNH. Half of this stake was acquired by Lachlan Murdoch, with both individuals jointly holding approximately 17.88%. On 26 November, mining entrepreneur and Australia’s wealthiest woman, Gina Rinehart, joined the board after securing a 10% equity position.

Packer’s investment sparked speculation due to anticipated reforms in sports broadcasting regulations and Ten’s depressed share price amid a sluggish market recovery.

On 23 February 2011, CEO Grant Blackley was dismissed; Lachlan Murdoch assumed the role of acting CEO. By February 2012, Murdoch was appointed Chairman, succeeding Brian Long who became Deputy Chairman, while James Warburton took over as CEO.

On 26 March 2014, Hamish McLennan was promoted to Executive Chairman after serving as CEO and Managing Director since March 2013, replacing Warburton. Murdoch exited TNH to join News Corp and 21st Century Fox as Non-Executive Co-Chairman.

On 27 July 2015, Paul Anderson was named CEO, with David Gordon appointed chairman following McLennan’s resignation.

On 11 March 2020, Anderson stepped down; Beverley McGarvey advanced to Chief Content Officer and Executive Vice President for both Ten and ViacomCBS Australia & NZ.

Foxtel Acquisition Proposal

In 2014, Foxtel, co-owned by News Corp Australia and Telstra, collaborated with U.S. cable operator Discovery Communications to submit a bid for Ten Network Holdings. Other contenders included U.S.-based Anchorage Capital Group and Saban Capital Group. However, Ten shareholder Bruce Gordon of WIN Corporation opposed the acquisition attempt, advocating for Ten’s continued Australian ownership.

On 15 June 2015, Foxtel reached an agreement to purchase a 15% stake in Ten Network Holdings, contingent upon approval from the Australian Competition & Consumer Commission. Prior to this arrangement, Discovery withdrew from the bidding consortium. Reports suggested Foxtel intended to advance with the acquisition if Australian cross-media ownership laws were relaxed.

Financial Crisis of 2017

In the first half of 2017, Ten Network Holdings announced a loss of AU$232 million and expressed serious concerns about its ability to remain operational. The company's continued existence relied heavily on the renewal or extension of a AU$200 million debt guarantee provided by key shareholders Lachlan Murdoch, Bruce Gordon, and James Packer, which was due to expire in December 2017.

By June 2017, these shareholders retracted their backing for a proposed AU$250 million loan intended to replace the expiring guarantee. As a result, Ten sought a 48-hour suspension of trading on the Australian Securities Exchange while assessing potential strategies, including the possibility of entering receivership. On 14 June 2017, the company officially entered voluntary administration.

Acquisition by CBS

After Ten entered receivership, major stakeholders Murdoch and Gordon proposed a merger to salvage Network 10, with the Australian Competition & Consumer Commission indicating no objections to an equal ownership arrangement. Nevertheless, on 28 August 2017, U.S.-based media giant CBS Corporation, which already owned a 33% share in channel Eleven, signed a binding agreement to purchase Ten for $123 million, subject to approval from the Foreign Investment Review Board. CBS took on the responsibility of refinancing Ten’s debts, including loans from billionaire shareholders James Packer, Lachlan Murdoch, Bruce Gordon, and loans from the Commonwealth Bank. Once approved, CBS would assume full control, nullifying all existing shares.

Murdoch and Gordon legally contested CBS’s acquisition in the Supreme Court of New South Wales to delay proceedings, resulting in postponement of the creditors’ meeting until 12 September. Creditors overwhelmingly endorsed CBS’s proposal, citing apprehensions about Murdoch’s prior management and potential workforce reductions under his ownership. The Supreme Court granted approval for the takeover on 10 November 2017.

The transaction was finalized on 16 November 2017, with shares transferred to CBS Network 10 BV, a company registered in the Netherlands. Consequently, Network 10 became part of CBS Studios International.

In May 2018, Network 10 launched 10 daily, a news and lifestyle digital platform initially planned for September 2017 during Ten's independent phase. This website ceased operations on 22 May 2020.

On 31 October 2018, Network 10 introduced a refreshed logo that replaced the "ten" wordmark with a stylised circular "10," symbolizing its identity as an "adventurous alternative" with an emphasis on fun. The network rebranded its multichannels Eleven and One as 10 Peach and 10 Boss (now 10 Bold), targeting younger adults and older viewers respectively.

In December 2018, Network 10 launched 10 All Access, an Australian adaptation of the American streaming platform CBS All Access offering ad-free content from both CBS and Network 10. This service was later rebranded as Paramount+ on 11 August 2021.

CBS-Viacom Merger

In December 2019, CBS Corporation merged once again with Viacom to form ViacomCBS (subsequently renamed Paramount), making Network 10 a sister network to Viacom’s Australian channels such as MTV and Nickelodeon as well as international outlets like Channel 5 in the United Kingdom.

In July 2020, Network 10 announced the introduction of a new multichannel called 10 Shake aimed at viewers under forty with "edgy" programming sourced from ViacomCBS brands including Nickelodeon, MTV, and Comedy Central. The channel aired children’s shows before 6pm and adult-oriented series during prime time. In August 2023, this channel was rebranded as Nickelodeon.

On 18 March 2024, Beverley McGarvey was appointed as president and CEO of Network 10 while also taking charge of streaming services and regional operations across Australia and New Zealand.

External links

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