ITV

Tag: Hamish McLennan

  • Ten Network CEO & chairman Hamish McLennan steps down; Paul Anderson named CEO

    Ten Network CEO & chairman Hamish McLennan steps down; Paul Anderson named CEO

    MUMBAI: Ten Network CEO and chairman Hamish McLennan has stepped down from his post. The move comes in the wake of Ten selling a 15 per cent stake to Australian pay-TV network Foxtel, which is a 50/50 joint venture between Rupert Murdoch’s News Corp and Telstra.

     

    Ten reportedly raised raise approximately Aus $154 million through the share offering, with Foxtel buying in Aus $77 million of the new equity. In return, it was decided that Ten’s board would be shrunk to six members, with Foxtel bagging one seat. 

     

    With McLennan stepping down from both the roles, Ten chief operating officer and chief financial officer Paul Anderson has been appointed as CEO with effect from 27 July, 2015.

     

    Ten Network non-executive director David Gordon has been appointed chairman. Gordon has been a director of Ten since April 2010 and, as a member of the Independent Board Committee, has been closely involved with the strategic transactions announced on 15 June.

     

    Gordon said, “The Board thanks Hamish for his contribution during what has been a challenging period in Ten’s history. He has led a strong and talented management team to effect a turnaround in the company’s performance. Hamish will work with myself and Paul Anderson on a seamless transition and he will continue to advise and assist the company until the end of the year. Ten is in an important and exciting phase, as we continue to build our revenue on the back of strong audience growth since mid-2014 and transition our sales activities to Multi Channel Network; and maintain our clear focus on growth and efficiencies.”

     

    McLennan added, “The strategic arrangements announced on 15 June, including the proposed investment by Foxtel in Ten and the transformative agreement with MCN, mean that my role is complete.”

     

    Anderson said, “I’m extremely honored to be offered this opportunity by the Board and I look forward to continuing to work with the very talented team at TEN to build on the improvements we have seen over the past year or so and execute our strategy, which remains unchanged. At the same time, the transition to MCN is progressing smoothly and has been very well received by the market.”

     

    The strategic arrangements included the appointment of Multi Channel Network as sales representative of Ten’s television and digital advertising inventory. Ten will undertake a selection process for a new chief financial officer.

  • News Corp’s Foxtel picks up 15% stake in Ten Network for $59 million

    News Corp’s Foxtel picks up 15% stake in Ten Network for $59 million

    MUMBAI: Australia based Ten Network is planning to sell a 15 per cent stake in itself to Foxtel, which is half owned by Rupert Murdoch’s News Corp and Telstra Corp Ltd.

     

    Foxtel will acquire the stake in the loss-making company for $59 million (A$77 million) at A$0.15 each, which is a 43 per cent discount to its closing price on Friday. Additionally, the company is also looking at raising another A$77 million with a rights issue.

     

    Ten Network will utilise the new capital of up to A$154 million to reduce debt and provide additional financial flexibility. The proceeds of the capital raisings will be used initially to repay the drawn amount under the existing Commonwealth Bank of Australia (CBA) revolving cash advance facility, with any excess funds initially retained as cash. The $200 million CBA facility will continue to be available to fund Ten’s ongoing operations, which will be utilised for working capital, payment of transaction-related expenses, selected investment in content and general corporate purposes.

     

    As a result of this deal, a Foxtel representative will join the Board of Ten, which will be reduced in size to six directors.

     

    Additionally, the deal also includes Ten taking a 24.99 per cent stake in Foxtel’s advertising business Multi Channel Network (MCN) and the option to become a 10 per cent shareholder in Foxtel’s subscription video on-demand service Presto TV. The deal is subject to approval by various regulatory authorities.

     

    MCN will be the ad sales representative of Ten television and digital advertising inventory and will start selling its ad inventory from 1 September, 2015.

     

    Ten executive chairman and CEO Hamish McLennan said, “Today’s announcement represents an important milestone for Ten and the conclusion of the strategic review process initiated by the Board last year. It positions Ten to drive long-term value for shareholders. The Board believes the agreements with Foxtel and MCN will materially enhance Ten’s business and better equip it to respond to the challenges of the ever-changing media and advertising landscape. We welcome Foxtel’s proposed investment and we are confident this proposal will drive value for all of Ten’s shareholders. By joining forces with MCN, Ten will gain new efficiencies, improved data capability and provide broader integration opportunities for its advertising clients.”

     

    “The combined sales operation will provide advertisers a new way to reach consumers across all video conTent distribution platforms. Ten’s ratings and revenue performance has materially improved this year as a result of a clear focus on our core audience of people aged 25 to 54, and a disciplined and selective investment in content. Our total prime time primary channel audience has increased 18 per cent this year,” McLennan added.

     

    “Our Chief Sales Officer, Louise Barrett, and her team have done an outstanding job growing Ten’s revenue base, capitalising on much improved audience numbers. The advertising sales representation arrangement with MCN is a step change and will enable us to further leverage our growing audience with enhanced scale and a broader, more targeted and efficient offering,” he said.

     

    Foxtel CEO Richard Freudenstein added, “We believe our proposed investment in Ten is a win-win for Ten and Foxtel. With Foxtel’s local knowledge and expertise, and MCN delivering synergies and improved advertiser access, we are confident that this proposal delivers a robust long term solution for a revitalised, competitive and profitable Ten.”