Bruce Gordon and Lachlan Murdoch will form a joint venture to restructure Network Ten, which could potentially result in the pair taking the free-to-air broadcaster private down the track.
The News Corporation co-chairman and the WIN Corporation owner are planning to work together, owning 7.7 per cent and 15 per cent respectively through their private investment vehicles, Illyria and Birketu, and propose a restructure which could see Ten's existing loan repaid, according to an announcement on the Australian Securities Exchange.
It's believed the partnership could result in Ten being taken private by Mr Gordon and Mr Murdoch if the government is successful in changing media ownership regulations which prevent the pair from buying it now.
It's understood Mr Gordon, John Atanaskovic, Mr Gordon's lawyer and counsellor, Mr Murdoch and his lieutenant Siobhan McKenna, put the deal together.
However, they have sought to make clear the tie-up does not constitute takeover bid for Ten and say it does not contravene current media ownership regulation.
Mr Gordon currently cannot buy Ten because of the 'reach rule' which prevents a television network from broadcasting to more than 75 per cent of the population. Mr Murdoch cannot buy Ten because of the 'two out of three rule' which prevents the ownership of a newspaper, TV network and radio station in the same market.
The government is seeking to scrap those regulations but does not yet have support in the Senate. Communications Mitch Fifield will introduce the bill to the House of Representatives on Thursday.
More to come.
