Could Ten buy DMG?

Staff Writer

The Ten Network have announced a strategic review of the Eye Corp outdoor business, which appears likely to result in the asset being put on the market.

Based on the multiple that private equity firm CHAMP recently paid for oOh!media, and the joint venture between Quadrant Private Equity and APN, it is believed that Eye Corp may be worth $193m.

However Eye Corp has a number of onerous contracts – particularly with Westfield – and this could pull the value south of $150m. Private equity firms are never keen to pay over the odds, and in the current financial climate this is particularly the case.

From a radio perspective, whether Ten retain or offload Eye is of little interest. Aside from one thing. A cashed-up Ten Network would be well-placed to buy 50% of DMG Radio Australia enabling it to package cross-media deals across television and radio through the Nova network.

Ten could buy Lachlan Murdoch's 50% share which he owns through his private company Illyria, or perhaps it may make a play for DMGT UK's 50% share, assuming the UK parent is prepared to exit. 

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