James Packer and Lachlan Murdoch may have been pasted (and rightly so) for their involvement in the One.Tel disaster but don’t think for a moment that they didn’t learn a thing or two about clever corporate plays from their fathers.
Packer’s surprise raid on Ten Network in October 2010 – in which he grabbed a 19% stake of the company for $245 million – was the first part of an impressive play that allowed he and Murdoch to grab control without having to take Ten over completely.
Soon after buying his stake Packer sold half to Murdoch then pushed Ten management for board seats with the support of fellow billionaire shareholders Bruce Gordon and Gina Rinehart.
The pair quickly forced out executive chairman Nick Falloon and installed Grant Blackley. After Blackley oversaw a major profit downgrade they ditched him, putting Murdoch in on an acting basis.
Was the big plan always to get Murdoch in the big chair? Or was the dynamic duo simply forced to act by Ten’s terrible results?
Who knows, but Packer and Murdoch are perfectly placed to restructure and remake Ten in any way they see fit.
It took just four months to get control and it didn’t involve an expensive and time-consuming takeover.
The big question is what will Packer and Murdoch do next?
Most media analysts are tipping Ten will abandon its current focus on news and perhaps even sport to focus once again on its core youth market.
Beyond that could they be planning some major corporate moves? Perhaps finding some way to combine Packer’s pay television investments, Ten’s free-to-air investments and Murdoch’s radio investments?
Stay tuned. The sons are rising.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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