Foxtel, which is a 50-50 joint venture between Telstra and News Corp Australia (the subsidiary of Rupert Murdoch's News Corporation) has been patient. Ten is conducting a $154 million Australian dollar (A$) capital raising, with new shares issued at A$0.15 - a steep 43.3 per cent discount to Friday's close of A$0.265. Foxtel will tip in A$77 million, making it a 15 per cent shareholder in Ten, while existing shareholders will be tapped for the remaining A$77 million at a price of A$0.15 per new share.
The money will be used to "reduce debt and provide additional financial flexibility", Ten said in a statement to the ASX.
Read MoreRupert Murdoch preparing to step down as CEO from 21st Century Fox
Ten is working hard to shore up its advertising presence and, as part of the deal, will become a 24.99 per cent shareholder in Multi Channel Network, the advertising sales JV between Foxtel and Fox Sports. Ten will also have an option for two years to become a 10 per cent shareholder in Presto, an online streaming service.
A management reshuffle will take place, too, with a Foxtel representative joining the Ten board, which will thereafter be reduced in size to six directors.
More from The Financial Times:
Renewable power will overtake coal if climate pledges are kept
China's hedge fund industry blooms as stocks boom
Global trade agreements have a new role
Ten executive chairman and chief executive Hamish McLennan said in a statement the Board believes the agreements with Foxtel and MCN will better equip the company to respond to the challenges of the media and advertising landscape.
He added: "By joining forces with MCN, Ten will gain new efficiencies, improved data capability and provide broader integration opportunities for its advertising clients."