Turner-NDTV Imagine: Swayamwar

NDTV and Turner Asia Pacific Ventures (TAPV) deal turned out to be really beneficial as it will help the channel to be debt-free. On December 8 2009 the NDTV informed the Business Stock Exchange (BSE), that the company has signed a pact with the TAPV.

NDTV Imagine has sold the stakes to TAPV for $ 117 million (Rs 586 crore). NDTV has sold 76 per cent of stakes for $ 67 million (Rs 335 crore) and also fresh issue of equity shares for $ 50 million (Rs 250 crore) to Turner.

The managing director, Turner International India, Anshuman Misra said, "Turner International has signed an agreement in principle to acquire 92% of NDTV Imagine, subject to regulatory and Time Warner board approval. We will provide complete details upon board approval."

So now TAPV is acquiring 92 per cent stake in NDTV Imagine for $117 million (Rs 546 crore).

As is known, NDTV Imagine also has some minority shareholding from the likes of Karan Johar's Dharma Productions and the management of NDTV Imagine, among others. Another 5 per cent stake is held by Dharma Productions. The names of the rest of the shareholders are not in the public domain.

If we analyze the NDTV stake sales in NDTV Imagine, it reveals that now the company wants to focus more on its news channels rather on General Entertainment Channel (GEC). Well if this is what the NDTV has in mind then this would be profitable decision as the NDTV Imagine soaps were not getting those television rating points (TRPs), except one reality show - Rakhi Ka Swayamwar, which got a little increase in the TRP.

Recently, NDTV also sold a 69 per cent stake in its NDTV Lifestyle for $ 55 million to US-based Scripps Media Interactive.