Blow to Ten as A$145m deal collapses Ten Network Holdings, the struggling Australian free-to-air television broadcaster chaired by Lachlan Murdoch, suffered another blow on Wednesday as a deal to sell its outdoor advertising business collapsed, sending its shares to a record low. The stock dropped 7.5 per cent to A$0.31 cents, the lowest level at which it has traded since listing in 1998, after Champ Private Equity said it would not proceed with the A$145m (US$149m) acquisition of Eye Corp. The announcement heightened concerns that Ten, which is due to report annual results on Thursday, will have to conduct another capital raising. Ten raised A$200m in June from shareholders including billionaires James Packer and Gina Rinehart to strengthen its balance sheet and acquire new programming content. However, poor viewing figures and a series of programming flops have put Ten at risk of breaking its banking covenants, according to analysts. In a report published earlier this week, CLSA said Ten would need to raise A$100m to avoid a breach. The broker also slashed its operating profit forecast for the year to August 2012 from A$73m to A$34m citing poor ratings at Ten and falling market audience share. Ten said it was still hopeful of striking a deal with Champ on "amended" terms but was also considering legal options. Ten had hoped to sell the business before it attempted to refinance a US$125m loan facility that expires in March. The decision to terminate the original sale agreement adds to the pressure on Mr Murdoch, the eldest son of Rupert Murdoch, to turn round Ten's performance. Since he joined the board almost two years ago Ten has shifted its strategy to focus on a younger demographic and has moved away from relying on tried and tested franchises such as MasterChef toward edgier locally produced shows. But several new programmes have flopped - a talent show hosted by Lachlan's wife, Sarah, was axed after a few weeks because of poor ratings - and its target market of "youthful audience" is under siege from new digital channels, social media and internet downloads. Mr Murdoch owns 9 per cent of Ten, as does Mr Packer, while mining magnate Ms Rinehart owns 10 per cent. In an attempt to halt the ratings decline Ten has fast-tracked several TV shows from the US, including Modern Family and the Emmy-winning drama Homeland. But they have failed to draw big audiences. A recent regulatory ruling in Australia has also damped takeover hopes. There has been speculation that the publishing company being spun out of News Corp might launch a takeover bid for Ten in an attempt to diversify away from print. This business will contain all of News Corp's Australian assets as well as newspapers in the US and UK. Champ, which owns rival outdoor advertising company oOh!media, agreed to acquire Eye Corp in July for A$120m in cash plus a A$25m deferred consideration, payable in three years. But according to recent media reports the private equity group had become concerned about Eye Corp's financial performance.