Indian News
11/20/2009 4:07 AM ET
(RTTNews) -
Broadcaster NDTV jumped nearly 8% thus far on the BSE Friday after the group reached a definitive agreement with US-based media company Scripps Networks Interactive Inc (Scripps) to create a strategic alliance for lifestyle channels in India. Totally, 5.83 lakh shares changed hands compared to a two-week daily average volume of 70,728 shares.
The proposed transaction will result in Scripps acquiring a 69 percent stake in NDTV Group's lifestyle programming subsidiary NDTV Lifestyle. The latter, launched in 2007, operates food and lifestyle channel NDTV Good Times, which targets India's rapidly growing middle class of television viewers with personality-driven programming and Internet content that focuses on a wide range of lifestyle genres, including food, travel, fashion and style.
NDTV Group will retain the balance 31 percent stake in the joint venture. The deal is worth $55 million (around Rs.260 crore) and is expected to be completed by the end of the first quarter of 2010.
In addition to operating NDTV Good Times, Scripps and NDTV Group plan to launch other lifestyle television channels through the NDTV Lifestyle partnership, a company statement said.
"We know our lifestyle brands play well around the globe, and NDTV Good Times channel and NDTV Lifestyle serve as sturdy platforms for us to build lifestyle television programming businesses in one of the world's most promising media marketplaces," said Greg Moyer, president of Scripps separately.
Scripps, which is looking at expanding its international presence, develops lifestyle-oriented content for television and the Internet, where on-air programming is complemented with online video, social media areas and e-commerce components on companion Web sites and broadband vertical channels. The company's media portfolio includes television and internet brands like HGTV, Food Network, DIY Network, Fine Living Network (FLN) and country music network Great American Country.
Prannoy Roy, NDTV Group's founder and principal shareholder, said: "Scripps and NDTV are clear leaders in lifestyle programming, which makes this strategic alliance between our two companies particularly powerful. With the unparalleled experience that Scripps has creating lifestyle brands and NDTV's depth of knowledge of the Indian market, we intend building strong lifestyle media businesses that will aggregate large and engaged audiences in India."
NDTV also said that it has reduced debt on its books by repurchasing $100 million ( Rs.464 crore) worth of bonds maturing in 2012. Its UK subsidiary NDTV Networks Plc has bought back these bonds for $72.4 million.
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