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.