Ten Network takeover by billionaires clears watchdog

TEN Network’s billionaire shareholders Lachlan Murdoch and Bruce Gordon have been given the regulatory allclear to launch a joint takeover of the embattled free-to-air network.

The Australian Competit- ion and Consumer Commission has ruled the duo’s bid, was unlikely to bring the industry any “substantial lessening” of competition.

However, a Ten Network under the control Mr Gordon and Mr Murdoch would deliver “greater alignment” of the interests of the two media moguls and Ten, the regulator said yesterday.

ACCC chairman Rod Sims also said the deal could weaken competitive incentives but said Ten and the Murdoch-linked Foxtel and News Corporation would remain competitors in a number of markets and be subject to competition laws.

“While this transaction will result in some reduction in diversity across the Australian media landscape, we have concluded it would not substantially lessen competition,” Mr Sims said.

In its assessment, the ACCC consulted with competitors, broadcasters, sports rights holders, content producers and advertisers as it judged the impact on news supply, bidding for sports rights and ad markets.

The deal still requires changes to media ownership legislation currently before federal parliament.

Mr Murdoch controls 7.4 per cent of Ten’s shares through investment vehicle Illyria.

Mr Gordon’s Birketu owns 15 per cent of the shares in Ten, while Birketu and WIN jointly hold 15 per cent per cent of issued capital in rival Nine.

Ten has been in a trading halt since June 13.