Shares of NDTV Friday locked at the upper circuit of 10% on BSE after its digital arm NDTV Convergence signed a five-year deal worth Rs 300 crore with New York-based content discovery and advertising platform Taboola. The media firm’s stocks surged 9.94% to Rs 39.25 a piece on the BSE, while the NDTV scrip was locked at Rs 39.15, up 9.97% on National Stock Exchange.
“The five-year deal ties NDTV Convergence exclusively to Taboola and involves a minimum guarantee of more than Rs 3 billion for NDTV Convergence, making it one of the largest deals not just for digital content but for the media space in its entirely,” NDTV said in a press release.
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In the Asia Pacific (APAC) region, this is the largest ever deal by Taboola. Earlier in September 2015, NDTV Convergence had first entered into a Rs 100 crore deal for a period of three years. Taboola uses its presence on sites like NDTV to recommend content from across the internet to the audience and lo offer highly-personalized native advertising, the statement added.
NDTV Convergence currently owns and operates the flagship portal, http://www.ndtv.com and all other digital properties of the group. “Like NDTV, Taboola operates with the user al the centre of its universe which is what makes this such a natural fit,” said Suparna Singh, CEO of the NDTV Group.
Meanwhile, after opening with mild losses, the domestic stock markets turned choppy and extended losses on Friday afternoon, as a global sell-off spooked investors. Sensex is down 380 pts to 36,050.47 while the Nifty is trading below 10,850 level.