Time Warner seeks to buy Australian broadcaster Ten Network for $588 mn

US media and entertainment giant Time Warner Inc is reported to have approached struggling Australian broadcaster Ten Network Holdings Ltd with a about A$680 million ($588 million) takeover bid.

The Australian Financial Review today reported that Time Warner sent a letter on 6 October to Ten's investment banking adviser Citigroup saying that it is interested in exploring a possible acquisition.

Time Warner, which has annual revenues of nearly $30 billion, is willing to offer A$0.25 a share for the Sydney-based company.

The letter said that a potential bid would be made by Time's cable division, Turner Broadcasting System, and would require the support of Ten investors James Packer, News Corporation co-chairman Lachlan Murdoch, WIN Corporation owner Bruce Gordon and mining magnate Gina Rinehart, who together hold a 40-per cent stake in Ten.

Last week, Ten said it had appointed Citigroup to explore "a range of potential strategic options."

Ten, which posted an annual net loss of A$168.32 million ($144.42 million), is reported to have received a joint bid from US cable television giant Discovery Communications Inc and Australian pay television firm Foxtel.

Its stock is currently trading at A$0.28 giving giving it a market cap of A$ 746 million.

Ten is Australia's third-largest free-to-air television broadcaster behind Seven and Nine. Its assets include three free-to-air television channels – Ten, Eleven and One – in Australia's five metropolitan markets of Sydney, Melbourne, Brisbane, Adelaide and Perth, plus the digital platform tenplay.

It also broadcasts the popular cooking serial MasterChef Australia whose Facebook page, has more than 1.3 million ''likes.''

Known as AOL Time Warner from 2001 until the demerger of AOL in 2009, Time Warner owns a vast array of properties that, among others,  include HBO, Cinemax, Turner Broadcasting (TBS, TNT, Cartoon Network, TruTV, CNN), Nascar Racing, New Line Cinema, Castle Rock Entertainment, The CW Television Network, DC Comics, Time Magazine, Entertainment Weekly, Essance Magazine, Fortune, In Style, People Magazine, and Sports Illustrated.