While the capital raising (including Foxtel’s investment) provides some breathing space, it does not provide enough capacity to compete with Nine and Seven. The bigger benefit potentially comes from partnering with Foxtel for content coupled with merging the sales function with MCN. On the former, we believe the ACCC will have serious concerns.

Event – Foxtel takes 15% stake in Ten Network: Ten has announced a A$154m capital raising made up of a 15% investment by Foxtel (up to A$77m at 15cps) coupled with a A$77m via a renounceable rights offer to existing shareholders (at 15cps). Entities associated with Gina Rinehart, James Packer and Lachlan Murdoch have indicated their intention to participate, Bruce Gordon participation has not been confirmed. In parallel, Ten also announced that MCN would become the sales representative for Ten. The capital raise is conditional on regulatory approval, expected to take at least three months.