Network Ten doesn’t want to buy Southern Cross Austereo’s TV stations
Network Ten won’t line up to buy Southern Cross Austereo’s network of 96 regional television signals, which have in effect been put on the market after a surprise takeover offer from rival ARN.
The TV network, which is owned by US giant Paramount, airs its programs across Southern Cross’s regional network through an affiliate deal that contributed the most of the primarily radio network’s $106.7 million in TV revenue last year.
But Jarrod Villani, Paramount Australia and New Zealand chief operating and commercial officer, said it worked well for Ten to broadcast into regional areas without owning the signals themselves.
Chief content officer Beverley McGarvey and chief operation and commercial officer Jarrod Villani.
“It’s not simply about, ‘do you want the asset or not’? It’s ‘does it make sense for you to own the asset’?” Mr Villani told The Australian Financial Review. “At this stage, it’s not an asset that we think that we need to own.”
Speaking at an industry event on Tuesday, Mr Villani was asked directly whether Paramount would consider a last-minute bid for Southern Cross – he did not rule it out. “We’ll see what happens,” he said.
ARN lobbed a surprise bid alongside private equity firm Anchorage Capital Partners to take over its ASX-listed rival Southern Cross, divide its assets, and create two new media companies.
It offered 0.753 ARN shares for each Southern Cross share, as well as 29.6¢ in cash and 12.7¢ a share in franking credits. Some major shareholders have already spoken out in favour of the deal.
Southern Cross Austereo CEO John Kelly took over in July.
Southern Cross has been looking for other suitors to counter the offer, hopeful of injecting some competition.
ARN, which owns the KIIS and Pure Gold
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