In a move targeted at consolidating its position, New Delhi Television Ltd (NDTV) is buying back the 26% stake held by media and entertainment conglomerate NBC Universal Inc in NDTV Networks Plc, the holding company for its non-news offerings.
NDTV informed the Bombay Stock Exchange that it will buy the stake through its wholly owned subsidiary NDTV Networks BV, which is based out of the Netherlands.
NDTV has not disclosed the size of the deal or how it will finance the buyback.
In January 2008, NBC had picked up 26% stake in NDTV Networks for $150 million, valuing the firm at $577 million. At that time, NBC was also given an option up its stake to 50% in two years.
The company reported a consolidation net profit of Rs 120 crore for FY09, which was mainly due to the deal with NBC. For June quarter 2009, the firm reported a net loss of Rs 87 crore.
Private equity investors including Lehman Brothers, Goldman Sachs, CSFB, among others also bought a 24% stake in NDTV Networks for about $120 million in 2007.
NBC Universal, which is owned by technology and services conglomerate General Electric Company, was last month reported to be in talks to actually increase its stake in NDTV Networks.
The channels under NDTV Networks include NDTV Imagine and NDTV Lifestyle, and the digital media business NDTV Convergence. NDTV Networks also owns 50% in Ngen, a media process outsourcing firm with Genpact, and software and technology firm NDTV Labs.
Leave Your Comment