The much-awaited New Delhi Television Ltd (NDTV) and NBC Universal (NBCU) strategic tie-up was concluded on Monday and this may result in more channels from NBCU’s kitty coming to India. Analysts also feel that this deal would give a boost to NDTV’s content, advertising rack rate and imagery.
NBCU, one of the world’s leading media and entertainment companies, now has an effective indirect stake of 26% in NDTV Networks Plc by a subscription of shares for $150 million (approximately Rs 650 crore). NDTV Network includes a general entertainment channel (GEC) NDTV Imagine, a lifestyle channel NDTV Good Times and a city-central channel NDTV Metronation.
The company has also forayed into media software, labs, emerging markets business etc and has also picked up a minority stake in a radio company.
In the next two years, NBCU can increase its stake, at the then fair market value, in the holding company of Networks PLC to 50% with NDTV group holding an equal 50% stake.
Said Vikram Chandra, CEO, NDTV Networks, “This investment will boost NDTV Network’s operations even further.” He added that the company might consider a content sharing pattern and NBCU may launch some its international channels in India.
Farokh Balsara, head of media and entertainment, Ernst & Young in India and partner, risk & business solutions practice feels that NBCU’s strengths lie in backend processes, advertising sales, broadcasting, uplinking, technology etc which will help NDTV upgrade its services. On the other hand, the kind of credentials NDTV has built in India will strengthen NBCU’s foray in the Indian market.
CD Mitra, president, Mudra MAX said, “NDTV could become a sourcing news hub for NBCU and vice versa.”
Formed in May 2004, through the combining of NBC and Vivendi Universal Entertainment, NBCU owns news and entertainment networks, a premier motion picture company, television production operations, a television stations group, and theme parks. NBCU is 80% owned by General Electric and 20% owned by Vivendi.