Pay TV giant Foxtel will take up to a 15 per cent stake in the troubled TEN Network, it has been announced.

The transaction is part of TEN’s $154 million capital raising, $77 million of which will be bought by Foxtel.

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The ASX-listed TEN Network Holdings announced to the market that the capital raising would “reduce debt and provide additional financial flexibility to continue Ten’s recent strong ratings momentum”.

Following the transaction, a Foxtel representative will be appointed to TEN’s board, which will be reduced to six representatives.

This is not the first time Ten Network and the Murdoch empire have been linked. Rupert Murdoch’s son Lachlan was chairman of Channel TEN until March 2014, when he resigned to join News Corp and 21st Century Fox.

Foxtel is 50 per cent owned by News Corp, and 50 per cent owned by Telstra.

As part of the deal, TEN will also take a 24.99 per cent stake in Foxtel-Fox Sports joint venture Multi Channel Network (MCN), and will have a two-year option to take 10 per cent stake in online streaming site Presto.

TEN chief executive Hamish McLennan said: “Today’s announcement represents an important milestone for TEN and the conclusion of the strategic review process initiated by the baoard last year. it positions TEN to drive long-term value for shareholders.

“The board believes 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.”

Foxtel chief executive Richard Freudenstein said: “We believe our proposed investment in TEN is a win-win for TEN and Foxtel. With Foxtel’s local knowledge and expertise, and MCN delivering synergies and improved advertiser access, we are confident that this proposal delivers a robust long term solution for a revitalised, competitive and profitable TEN.”