SYDNEY, Aug. 28 (Xinhua) -- Embattle free-to-air broadcaster in Australia, Network Ten, has been bailed out by the American media conglomerate CBS, it was announced on Monday.
CBS agreed to purchase the Australian network, currently under administration, and has entered into a binding agreement that would see the U.S. company purchase the entirety of its business and assets.
In a statement obtained by Xinhua, the administrators of the struggling network, KordaMentha, said that CBS has agreed to ensure that there will be no disruption of service for the local broadcaster.
"As part of the agreement to purchase the Network Ten business, CBS will provide immediate financial support to ensure continuity of operations ahead of the upcoming meeting of creditors," administrator Jarrod Villani said.
Leslie Moonves, chairman of CBS, said that he was pleased at the move and saw the local network as a "prime broadcasting asset."
"Network Ten is a prime broadcasting asset with over half a century of experience and brand equity in Australia," Moonves said.
"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."
The shock announcement comes after months of speculation about the fate of the network after billionaire media moguls Lachlan Murdoch and Bruce Gordon, sought to take control of the company despite media laws in Australia that currently prohibit the ownership "two out of three" media forms in the same jurisdiction.
Although the purchase by CBS will still have to receive authorisation from the Australian Foreign Investment Review Board, the purchase is likely, and could potentially throw into doubt any changes now being made to Australia's media ownership laws.
The network was placed into administration in June of this year after Murdoch and Gordon, along with fellow billionaire James Packer, refused to guarantee a 250 million Australian (198.58 U.S. million) dollars line of credit.
The purchase price paid by the U.S. media giant to acquire the Australian television network has yet to be released.
A single purchase
