U.S. media giant Time Warner Inc is planning to buy struggling Australian TV network Ten for 25 cents per share or A$680 million ($588 million), according to the Australian Financial Review on Monday.
Time Warner approached Ten's investment banking adviser, Citi regarding the takeover bid.
Aside from Time Warner, U.S. cable behemoth Discovery and pay-TV business FoxTel and Fairfax Media were also reported to have discussions with Ten Network.
Ten has struggled to capture both viewers and advertisers for the past several years now and pushing a takeover for media giant like Time Warner and Discovery would provide quality content to its portfolio, according to IG market strategist Evan Lucas.
"Time Warner has HBO under its belt and that is obviously a massive revenue driver on cable," he said.
"That's the interesting thing about it, whether they would want to take those programs, which do really well here in Australia, and put them on free to air," he added.
Time Warner may also use Ten to set up an online streaming service for its TV products in Australia.
HBO is entering the online streaming market in the US, putting it in direct competition with market-leading Netflix.
"All those guys are looking at streaming, meanwhile, are venturing into the streaming business as they prepare for the expected local arrival of Netflix in 2015. All of them are looking at a way to b eat Netflix and be in that market and be ready for it," Lucas said.
The news that Ten is in talks with other big networks has pushed its shares 30 percent last week, though the value is still significantly lower compared to couple of years ago.
Last month, the youth-focused channel, with the lowest ratings of Australia's three commercial broadcasters last year, posted a wider-than-expected annual net loss of A$168.32 million ($144.42 million) as revenue declined and costs rose.
The takeover bid would create losses for the network's high profile shareholders and Australia's richest tycoons including Lachlan Murdroch, Gina Rinehart and James Packer.
