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Case
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Reference no. 310-166-1
Published by: Amity Research Centers
Published in: 2010

Abstract

Turner Broadcasting System Inc, acquired 85.68% stake in NDTV Imagine, an indirect subsidiary of NDTV Ltd, in early 2010 for $65.54 million through Turner Asia Pacific Ventures (TAPV). Besides, Turner also proposed to infuse a sum of $50 million to fund Imagine''s business. NDTV posted huge losses of INR 834.1 million and INR 855.9 million in quarter ending June 2009 and September 2009 successively and owed a debt of INR 1.12 billion as of March 31st 2009. This deal marked the completion of NDTV''s four-step restructuring business plan. Some analysts were of the opinion that NDTV would become debt free after Turner gains control over it. Moreover, Turner''s backing would also enable NDTV to explore the business opportunities. Some analysts were of the view that this acquisition would be vital for Turner as India remained one of Asia''s key markets in terms of revenue making. Moreover, NDTV Imagine occupied the fifth position in Hindi GEC genre in terms of viewership and acquiring Imagine would help Turner establishing a strong foothold in the Indian market. Some analysts also believed that NDTV''s superior network and Turner''s resources and expertise together would contribute to the success of Imagine TV. However, some industry observers were skeptical about the success of this joint venture as Turner''s deal with Miditech in operating Hindi GEC Real did not take off earlier. Further, in addition to this, the development of quality content and superior programming also remained the key to the success of this venture.
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2010

About

Abstract

Turner Broadcasting System Inc, acquired 85.68% stake in NDTV Imagine, an indirect subsidiary of NDTV Ltd, in early 2010 for $65.54 million through Turner Asia Pacific Ventures (TAPV). Besides, Turner also proposed to infuse a sum of $50 million to fund Imagine''s business. NDTV posted huge losses of INR 834.1 million and INR 855.9 million in quarter ending June 2009 and September 2009 successively and owed a debt of INR 1.12 billion as of March 31st 2009. This deal marked the completion of NDTV''s four-step restructuring business plan. Some analysts were of the opinion that NDTV would become debt free after Turner gains control over it. Moreover, Turner''s backing would also enable NDTV to explore the business opportunities. Some analysts were of the view that this acquisition would be vital for Turner as India remained one of Asia''s key markets in terms of revenue making. Moreover, NDTV Imagine occupied the fifth position in Hindi GEC genre in terms of viewership and acquiring Imagine would help Turner establishing a strong foothold in the Indian market. Some analysts also believed that NDTV''s superior network and Turner''s resources and expertise together would contribute to the success of Imagine TV. However, some industry observers were skeptical about the success of this joint venture as Turner''s deal with Miditech in operating Hindi GEC Real did not take off earlier. Further, in addition to this, the development of quality content and superior programming also remained the key to the success of this venture.

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Location:
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Other setting(s):
2010

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