The owners of the Ten TV network in Australia are feeling the pinch.
Radio New Zealand's Sydney correspondent says that if you want to burn a whole lot of cash these days, it's pretty hard to beat the idea of sinking it into a listed media company.
Fairfax Media is one such black hole. Another one is the Ten Television network, which has proved to be a walking disaster for Australia's billionaire fraternity, including mining heiress Gina Reinhart and Lachlan Murdoch and James Packer.
Weighed down by poor ratings and a shrinking advertising market, Ten last week announced a highly dilutive capital raising of 20 cents per share, representing a discount of almost 40% on its last traded price.
This non-renounceable rights issue follows the network's recent decision to sell its outdoor advertising business and sack dozens of employees in a bid to stem the bleeding.
Ten shares have fallen by about 25%. At 10.26am AEDT on Monday, Ten shares were at 24.5 cents, down eight cents from its last traded price of 32.5 cents.
AAP reports the company has raised about $A167 million through the issue of new shares at 20 cents each to institutional investors as part of its capital raising venture.
All four of the company's major shareholders took up their entitlements to new shares.
A second component of Ten's capital raising, for retail shareholders, will be conducted in January.
It is seeking to raise $A230 million to pay down debt.
