oOH start DD on TEN’s Eye Corp

Following their announcement to the market that the Eye Corp business would be subject to a strategic review, TEN have entered a formal due diligence phase with oOH!media for them to consider the business. 

It is believed that oOH have made an indicative non-binding offer of between $125m and $150m, although this range was offered when APN Outdoor were also a potential suitor. Now that oOH are believed to be the only legitimate buyer it appears likely any final offer would be towards the lower end of that range.

Should a sale occur it would provide welcome relief for TEN shareholders who have seen the company share price plummet in recent months, and trade below 70c per share over the past week.

There is the widely discussed possibility that TEN may purchase the 50% of DMG Radio that is owned by Lachlan Murdoch's Illyria, to formalise and grow cross-media opportunities for advertisers. Illyria obtained 50% of DMG Radio for $110m in 2009.