Foxtel is taking a $77 million stake in the Ten Network

TEN Chief Executive Officer Hamish McLennan . Getty/ Quinn Rooney

Foxtel will take a holding of up to 15% in the troubled Ten Network for $77 million.

The deal is part of a package aimed to raise $154 million for the free to air network. The money will be used to reduce debt.

Ten will also get an option for two years to become a 10% shareholder in Foxtel’s online streaming service Presto.

Foxtel will pay 15 cents a share. Current Ten shareholders will also be able to invest at the same price, with a further $77 million to be raised.

As part of the deal, Ten will also take a 24.99% stake in Multi Channel Network (MCN), the Foxtel and Fox Sports joint venture for advertising sales.

Executive chairman Hamish McLennan said: “The agreements with Foxtel and MCN will materially enhance Ten’s business and better equip it to respond to the challenges of the ever-changing media and advertising landscape.”

Ten lost $168.3 million in the year to the end of August in a soft advertising market.

Ten shares are down 1.89% to $0.26 in early trade.

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