CBS will leverage Ten's digital assets to launch their digital subscription video on demand service, CBS All Access, the company said.
Major investors in the Ten Network, Lachlan Murdoch, Bruce Gordon and James Packer, called in receivers.
In addition to the main linear channel, the deal also includes digital multi-channels Eleven - in which CBS already owned a 33 per cent stake - and One, as well as Ten's digital catch-up platform, Tenplay. Now, US corporation CBS has emerged as the new owner. Financial details have not been disclosed. But CBS is owed around 800 million dollars as a creditor. Secured creditors are expected to be paid in full.
Recievers PPB Advisory and administrators KordaMentha are said to be working together to make sure that Ten's operation continue uninterrupted while the transaction is finalised.
For CBS the move provides an opportunity to enter the Australian market, said Armando Nuñez, President and CEO, CBS Studios International.
"Network Ten and CBS have enjoyed a close working relationship for almost two decades, and now CBS will continue to provide Network Ten with access to the very best in US content", Armando Nunez, President and CEO of CBS Studios International said.
The Murdoch-Gordon joint bid was contingent on a suite of media reforms which have been blocked by the Australian senate.
The US network says it will supply its own content as well as produce Australian sport, drama, reality and news.
CBS and NY hedge fund Anchorage Capital Group were among nine parties that signed non-disclosure agreements to gain access to Ten's information memorandum.
Ten booked a A$232-million half-year loss in April, and rivals Seven West Media Ltd and Nine Entertainment Co Ltd swung to annual losses after writing down TV assets.
"CBS and Ten have had a close and strong relationship for nearly two decades", Harris said "CBS is one of our key c partners and has owned a third of [Channel] 11 since it was launched in January 2011". The Australian government is pursuing reforms which could have allowed the deal, but the bill is now stalled in parliament and it looks like Network Ten could not afford to wait it out.
The board was forced to act after Murdoch and Gordon refused to extend or increase an A$200m cash advance facility from the Commonwealth Bank of Australia (CBA), which expires in December.
Almost 24-years later, the U.S. studio has blindsided his son, Lachlan Murdoch, and taken Australian free-to-air broadcaster Network Ten from under his nose. CBS is looking to expand the service in global markets and earlier this month announced it would launch it in Canada in the first half of next year.