Interest in buying Aussie network lifts share price

Just six months ago Ten needed the backing of three of its major shareholders - businessman James Packer is one of them. Photo / Getty Images

Takeover interest in the Ten Network has boosted the struggling Australian broadcaster's share price, but analysts say predators face a major battle taking control and turning the company around.

Convincing major shareholders Gina Rinehart, James Packer and Lachlan Murdoch to take a loss on their investments, plus repairing Ten's tattered reputation and balance sheet, are major hurdles facing any brave suitors.

Global media investor Providence Equity Partners is the latest firm reportedly running its eye over Ten, as the broadcaster continues to struggle for ratings and revenue.

The value of the network behind Masterchef Australia and Offspring has slumped by about 80 per cent in the past four years to around $677 million.

Ten shares hit an 18-month low last week after it again warned of falling revenue - despite a ratings improvement - and rising costs.

Takeover speculation helped Ten shares recover some ground on yesterday, adding 1.25 cents, or 5 per cent, to 25.75c.

A Ten spokesman said the company does not comment on market rumours.

IG market strategist Evan Lucas said he wasn't surprised by takeover interest in Ten, as it could soon need to raise more money to push ahead with chief executive Hamish McClennan's turnaround plans.

Just six months ago Ten needed the backing of three of its major shareholders - Murdoch, Packer and Bruce Gordon - to secure a $200 million loan in 2013.

"There's a lot of egos on the table," Mr Lucas said.

"Whether or not they can handle the fact this has been a horrible investment and walk away from it, that what's interesting in this."

New owners would have to deal with Ten's growing debt, while also spending on new programming, Mr Le Brun said. "A major problem is the lack of live sport."

- AAP