What is James Packer’s next move with Ten Network?

Gambling and media mogul James Packer’s $300 million share raid on Ten Network has become one of the biggest media stories of the year for one very good reason – no-one quite understands Packer’s motive for the move.

So far, Packer has spent about $300 million to acquire a 16.48% stake in Ten Network, although reports suggest Packer is keen to move to 19.9%.

Whether he would then launch a full takeover bid for Ten is unclear. Some commentators say Packer will be content to get some seats on the Ten Network board and force change at that level, while others say buying the company outright would allow him to restructure it much more quickly.

But exactly what does Packer plan to do with Ten? Some of the suggestions we’ve seen today include:

• Packer may seek to shut Ten’s One HD sports network and replace it with a Foxtel’s Sky News Service (given Packer is a Foxtel shareholder through Consolidated Media).
• Packer plans to sell Ten’s Eye Corp outdoor media division, although this sale would potentially be at a loss.
• Packer is using his investment as an “insurance policy” should state governments increase gambling taxes at Crown’s casinos.
• Packer will veto Ten’s plans for a new hour of news and current affairs programming of an evening, which recent hires George Negus and Chris Masters are set to lead.

All of the above options suggest Packer will take an extremely close interest in the nitty-gritty of Ten’s programming and operations – something he never seemed to do when he owned Nine Network through Publishing & Broadcasting Limited.

Indeed, Packer was often criticised for focusing too much on his gambling interests while at the helm of Nine.

If he does not move to full ownership, Packer will also have to “share” power with another strong-minded industry figure in Bruce Gordon, the owner of the WIN regional television network and of a 12% stake in Ten.

Gordon’s team welcomed Packer’s investment yesterday, but they are probably going to want a say in any bold changes Packer may or may not have in mind.

For starters at least, Packer is likely to use his stake to get a seat (or seats) on the board and take stock of Ten Network’s position, and particularly its cost base.

If he really wants to push for change, he’s going to have to decide how he does it.

From the board, with his 20% stake and Gordon by his side and an understanding that there may be some resistance to his plans? Or as the 100% owner of Ten, with complete control to make decisions as his likes?

An interesting 12 months looms for Australia’s sixth richest man.