NBC UNIVERSAL FOLLOW VIACOM AND DISNEY IN INDIAN MEDIA INVASION
January 24th 2008 05:12
The media invasion of India is well and truly on, with NBC Universal becoming the third major US media conglomeration to enter the Indian marketplace.
Viacom and Disney have already got a foothold, and NBC Universal this week confirmed that it has acquired a 26 percent stake in NDTV Networks Plc, the UK subsidiary of Indian media co NDTV.
Under the agreement, an affiliate of NBC Universal will pick up the 26 percent stake in NDTV Networks PLC for US$150 million, and NBC Universal’s affiliates will also have the option of acquiring up to a 50 percent stake in the NDTV Networks Plc in the third year of the joint venture.
The agreement does not cover any news channels in India, in which foreign direct investment is regulated.
This is the statement NDTV lodged with the Bombay Stock Exchange:
“New Delhi Television Ltd (NDTV) advises that NDTV and an overseas subsidiary of NDTV have signed a Memorandum of Agreement with NBC Universal, Inc. and a subsidiary of NBCU in respect of the sale / issue by an overseas subsidiary of NDTV of an effective 26% stake to an affiliate of NBCU for a consideration of USD150 million. The said subsidiary of NDTV is the indirect parent Company of the following Companies: NDTV Imagine Ltd, NDTV Convergence Ltd, NDTV Labs Ltd, NDTV Lifestyle Ltd, NDTV Emerging Markets B.V and the said subsidiary is a joint venture partner in NGEN Media Services Pvt Ltd.
“The MoA also envisages that NBCU affiliates would have the option to acquire up to 50% of said subsidiary in the third year of the joint venture at the then fair market value. The MoA and the transaction contemplated therein are subject to receipt of all necessary approvals. The proposed joint venture shall not relate to news channels in India.”
The deal will apparently take a 2-3 months to finalize, and Branson has not mentioned the name of the prospective partner.
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