CBS to acquire Australia's Ten

SYDNEY: CBS Corp has agreed to acquire struggling Australian television broadcaster Ten Network, and launch its streaming service in the country.

The most-watched US network's decision to buy Ten, which entered administration in June, also thwarts a potential bid from News Corp. co-chairman Lachlan Murdoch. 

The terms of the deal weren’t disclosed. "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," CBS chairman and chief executive Leslie Moonves said in a statement.

CBS is wading into an Australian market where broadcasters, and Ten in particular, are cutting costs as losses deepen, with advertisers following viewers to streaming services such as Netflix and Amazon's Amazon Prime, Reuters reports.

The transaction adds Ten to CBS' global content and distribution portfolios. In addition to core linear channel TEN, the deal includes digital terrestrial television channel (DTT) ELEVEN, which CBS already owns a 33 per cent stake, the DTT channel ONE and Network Ten's digital platform, TENPLAY.

At the same time, by leveraging Network Ten's linear and digital assets, CBS will also launch CBS All Access, the company's digital subscription video on-demand service, in the Australian market. This marks another international territory announced for CBS All Access this month. The company recently unveiled plans to make the service available in Canada next year.

"This acquisition not only presents CBS with considerable broadcasting opportunities in Australia, but also allows for further multi-platform distribution and growth," said Armando Nuñez, president and CEO, CBS Studios International. 

The transaction will be completed in accordance with the Australian voluntary administration process and is subject to certain regulatory approvals.

CBS' businesses include CBS Television Network, The CW (a joint venture between CBS Corporation and Warner Bros. Entertainment), CBS Television Studios, CBS Studios International, CBS Television Distribution, CBS Consumer Products, CBS Home Entertainment, CBS Interactive, CBS Films, Showtime Networks, CBS Sports Network, Pop (a joint venture between CBS Corporation and Lionsgate), Smithsonian Networks, Simon & Schuster, CBS Television Stations, CBS Radio and CBS EcoMedia.