Time Warner considers $588 million acquisition of Network Ten

It is a deal that could see the face of Australian television change forever. Time Warner has reportedly got its eye on the struggling Australian television channel Network Ten in a potential $588 million takeover bid. The Australian Financial Review reported on Monday that the American media company had indicated in a letter sent to Citi, Network Ten’s banking adviser, it would be prepared to pay 25 cents a share for the local TV network, which adds up to roughly $588 million for a majority stake.

U.S. media giant Time Warner Inc (TWX.N) has approached struggling Australian broadcaster Ten Network Holdings Ltd (TEN.AX) about a A$680 million ($588 million) takeover bid, the Australian Financial Review reported on Monday. The indicative approach was pitched at A$0.25 per share and “only intended to facilitate further discussions with you”, AFR reported, quoting an Oct. 6 letter from a Time Warner executive to Ten’s advisers, Citigroup. Time Warner declined to comment, while Ten Network and Citigroup were not immediately available for comment. Last week, Ten announced it had appointed Citigroup to assess “a range of potential strategic options”, as media reported it had fielded a joint takeover approach from U.S. cable television giant Discovery Communications Inc (DISCA.O) and Australian pay television firm Foxtel.