The Television Eighteen (TV18) Group and private equity fund SAIF Partners have formed a 75:25 global joint venture for television channels. This is essentially for the home shopping network business. The Cyprus-based joint venture would be called TV 18 HSN Cyprus. TV18 holding company Network Holdings will retain 75 per cent stake, while the Hong Kong-headquartered private equity fund will hold 25 per cent stake. The financial terms are not disclosed.

TV18 has already launched its home shopping business - Home Shop 18 - in a limited way. This venture - HSN India - has been set up with an initial capital of about Rs 5.5 crore or $1.3 million. It has also launched a website. But a full-fledged channel is yet to be launched.

SAIF Partners has a similar joint venture business in China called Acorn International, which went in for a $128-million IPO last fortnight. This JV had revenues of close to $200 million in 2006. The fund is trying to repeat the China success in India in the home shopping space. However, according to The Economic Times, the scope of this JV is not limited to India alone. The JV has plans to start a bouquet of entertainment and info-commercial channels globally. The first phase of operations will start in India with Delhi as the base, and later it plans to move into markets in the Middle East, UK and USA, in partnership with local companies. This is essentially targeted at the Indian diaspora.

Posted on 04/26/07, 5:35 PM
in: Deals, Main Page, Private Equity
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