The battle between Australia’s big media companies has taken a new twist, with Kerry Stokes’ Seven Media Group launching legal action at Ten Network, which announced it had poached Seven executive James Warburton to fill its vacant chief executive’s chair.
The legal action, which Ten announced to investors this morning, comes just weeks after James Packer controversially quit the Ten board, apparently in anger over the decision to hire Warburton.
It was reported that Packer and Stokes had a loose agreement not to step in each other’s patch and Packer believe Warburton’s poaching would anger his fellow media baron.
According to a statement from Ten, Seven Media group is “contending the existence of employment and post-employment restraints” that form part of Warburton’s contract.
However, Ten does not appear to be too worried at this stage.
“Ten considers that it has acted properly and in a way that is consistent with Mr Warburton’s employment obligations and will be defending any proceedings accordingly.”
“Ten looks forward to Mr Warburton commencing with Ten as Chief Executive Officer, as previously announced, on July 14, 2011.”
Ten says it will not comment further as the matter is before the courts.
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
