Ten launches A$230m rights issue Ten Network Holdings, the beleaguered free-to-air television broadcaster chaired by Lachlan Murdoch, has launched its second fundraising in six months and warned of a further deterioration in revenues and in the advertising market. In an effort to shore up its balance sheet, the Australian commercial TV network on Thursday said it would raise A$230m (US$241m) before fees through a fully underwritten rights issue that will nearly double its share capital. Three of Ten's billionaire shareholders, who control 32 per cent of the broadcaster - Mr Murdoch, James Packer and Bruce Gordon, owner of regional TV group Win Corporation - have pledged their support for the capital increase. Gina Rinehart, Australia's richest person and a 10 per cent shareholder, has yet to state her intentions. Since Mr Murdoch joined the board in November 2010, Ten's share price has slumped almost 80 per cent. Analysts estimate that Mr Murdoch, Mr Packer and Ms Rinehart have lost more than A$360m on their investments in Ten, now ranked a distant third in the Australian free-to-air market. Mr Murdoch's plan to take control of Ten's operations, cut costs and revamp its programming to focus on locally produced content has backfired. Revenues and ratings have fallen sharply due to a series of programme flops. Ten's share of the key metropolitan advertising market dropped to 21 percentage points in October, around half that of market leader Seven Network. Shareholders are being offered the chance to buy four new shares for every five they own at 20 cents each - a 38.5 per cent discount to Ten's closing price on Tuesday. The shares were suspended from trading on Wednesday and will resume trading on Monday. When Ten raised A$200m from shareholders in June to "invest in programming" and "strengthen its balance sheet" that capital increase was pitched at 51 cents a share. The proceeds of the latest fundraising will be used to repay US$210m of US private placement debt due to mature in March. Following the capital increase Ten expects to have a net cash position of A$45m. Ten recently disposed of its outdoor advertising business for an upfront payment of A$100m. Speaking at the company's annual shareholders meeting in Sydney on Thursday, Mr Murdoch, the eldest son of News Corp chairman Rupert Murdoch, blamed poor execution of its spring programming schedule and a weak advertising market for the company's troubles. He said the rights issue was "prudent" given the uncertain backdrop. "In the first quarter of [financial year] 2013 the advertising market has continued to be weak and uncertain, and within that market, our execution has been poor," he said. In the year to August Ten recorded a net loss of A$12.9m. Mr Murdoch said the board was determined to return Ten to an "adequate level of performance" and promised to cut costs by a further A$35m.