The deal, which surprised some analysts, gives CBS a true international footprint and boosts their ad revenue.
August 29, 2017
‘CBS Corp. surprised many on Wall Street when it unveiled a deal late Sunday U.S. time to acquire troubled Australian free-to-air broadcaster Network Ten.
The transaction, for which financial terms weren’t disclosed, will give it control over Ten’s main network, its two digital terrestrial channels Eleven and One and catch-up TV streaming service Tenplay.
RBC Capital Markets analyst Steven Cahall in a report said the deal made sense, as CBS is already very familiar with Ten’s business. “CBS supplies content to Ten and is its largest unsecured creditor,” he wrote. “CBS also owns a 33 percent stake in Ten’s digital channel, Eleven.”‘