Mukesh Ambani forays into media via TV18
Insearchindia.com Team
(13 January 2012 11:05 pm)
MUMBAI: In a swift move, India’s richest man Mukesh Ambani marks his entry into the media business.
Ambani-led Reliance Industries (RIL) said Tuesday it will invest in Raghav Bahl-promoted Network18 Media & Investments and TV18 Broadcast through an Independent Media Trust.
As per the deal, the subsidiary will fund promoter entities of the TV18 group to subscribe to rights issues. In return, it will get access to content from TV18 group for its 4G broadband network that Reliance is all set to roll out this year.
Bahl will continue to retain management and 51 per cent control over the two media entities.
Meanwhile, boards of both -- Network18 and TV18 -- have approved rights issue of Rs 27 billion each. TV18 Rights Issue proceeds, at a price of not more than Rs 40 per equity share, will be utilised to repay the existing debt, fund the acquisition of ETV Channels and fund working capital needs.
Meanwhile, Network18 rights issue proceeds, at a price not more than Rs 60 per equity share, will be utilised to repay the existing debt and subscribe to the Rs 14 billion of the rights Issue of TV18.
The net aggregate rights issue of both Network18 and TV18 will result in a fund raising of Rs 40 billion.
The current promoter entities of Network18 will acquire shares worth Rs 17 billion of this rights issue, for which they have entered into an arrangement with RIL's trust.
"The promoter companies of Network18 and TV18 and the Trust have entered into a Term Sheet under which the Trust would be subscribing to the Optionally Convertible Debentures (OCDs) to be issued by the Promoter Companies. Reliance will leverage its deep understanding of the Indian markets—consumer insights, technological expertise, and the ability to build and manage scale—to make this a "win-win" partnership. This will create value and be accretive to the shareholders of RIL," RIL said in a press release.
Meanwhile, TV18 will acquire the TV business of the Eenadu Group.
The TV18 board announced that the company plans to attain 100 per cent interest in regional news channels in Hindi namely ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan and ETV Bihar and ETV Urdu channel, 50 per cent interest in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya and 24.50 per cent interest in ETV Telugu and ETV Telugu News.
TV18 will have board and management control of ETV news channels and ETV non Telugu GEC channels. The board has approved an outlay of up to Rs 21 billion for the acquisition.
TV18 also has an option to buy the balance 50 per cent interest in ETV non Telugu GEC channels and additional 24.50 per cent interest of ETV Telugu Channels.
Ernst & Young (E&Y) acted as advisors for financial and tax due diligence and valuation of the assets. The legal due diligence was carried out by Khaitan & Co, TV18 said.
After the deal, on a combined basis, TV18 will be offering a mix of national and regional channels catering to diverse genres like Hindi and regional entertainment; general news in English, Hindi and regional languages; business news in Hindi, English and regional languages; music; kids; devotional and infotainment channels.
As a part of the deal for acquisition of ETV Channels, Network18 and TV18 have also entered into a Memorandum of Understanding with Infotel Broadband Services Limited (“Infotel”), a subsidiary of RIL. Under this agreement, the companies and their associates will have the right to distribute the content of all the media and web properties of Network18 and programming and digital content of all the broadcasting channels through 4th Generation Broadband Network of Infotel. Infotel shall have preferential access to this content on a first right basis as a most preferred customer.
Network18 founder, editor and MD Raghav Bahl said, “This is a truly seminal moment in the 18-year-old history of Network18/TV18. By inducting such a significant amount of equity, our Balance Sheets will become among the strongest in the industry. Also, by acquiring this strategic control over several ETV Channels, TV18 will have a bouquet of leading television channels. Riding on the imminent digital wave, I am convinced that this acquisition is a significant move which will catapult TV18 into the forefront of India’s broadcasting industry.”
"Further, on a debt free basis, both Network18 and TV18 hope to strengthen their position in various media segments like news and entertainment broadcasting, consumer internet, digital and print publications, filmed entertainment, home-shopping, e-commerce and other emerging businesses."
On the news, both Network18 and TV18 stocks ralled and hit the upper circuit in the early hours of trading on the BSE. While Network18 scrip closed at Rs 46.4 per share, TV18 closed at Rs 33.70 per share on Tuesday.
Sunday, January 15, 2012
Reliance Industries in deal with TV18 Group?
Insearchinida.com's News Headlines
Reliance Industries in deal with TV18 Group?
Insearchindia.com Team
(3 January 2012 8:30 am)
MUMBAI: The market is speculating Mukesh Ambani’s Reliance Industries to invest in Network18 Group to fund the acquisition of regional television broadcaster ETV. The investment is likely to be made through a subsidiary.
The value of the ETV deal is pegged at around Rs 20 billion. Though TV18 and Network18 have proposed rights issue, the acquisition price of ETV is too high and needs external support. There could be a partial buy of ETV's assets.
When contacted, Network18 chief executive officer B Sai Kumar declined to comment on the issue. I Venkat, director on the Eenadu board, said he was not aware of the development.
A formal announcement is expected Tuesday.
Network18 and TV18 founder-promoter Raghav Bahl needs to reduce debt that remains high. The acquisition of ETV will help TV18 to increase its subscription revenues.
Shares of TV18 Broadcast rose 5.75 per cent on the BSE while Network18 was up 6.78 per cent.
RIL will be rolling out its broadband services later this year and needs exclusive content to pump through them.
Reliance Industries in deal with TV18 Group?
Insearchindia.com Team
(3 January 2012 8:30 am)
MUMBAI: The market is speculating Mukesh Ambani’s Reliance Industries to invest in Network18 Group to fund the acquisition of regional television broadcaster ETV. The investment is likely to be made through a subsidiary.
The value of the ETV deal is pegged at around Rs 20 billion. Though TV18 and Network18 have proposed rights issue, the acquisition price of ETV is too high and needs external support. There could be a partial buy of ETV's assets.
When contacted, Network18 chief executive officer B Sai Kumar declined to comment on the issue. I Venkat, director on the Eenadu board, said he was not aware of the development.
A formal announcement is expected Tuesday.
Network18 and TV18 founder-promoter Raghav Bahl needs to reduce debt that remains high. The acquisition of ETV will help TV18 to increase its subscription revenues.
Shares of TV18 Broadcast rose 5.75 per cent on the BSE while Network18 was up 6.78 per cent.
RIL will be rolling out its broadband services later this year and needs exclusive content to pump through them.
Monday, December 19, 2011
Cable digitisation gets parliamentary approval
Insearchindia.com's Digital Edge
Cable digitisation gets parliamentary approval
Team
(19 December 2011 7:46 pm)
NEW DELHI: In a major step forward, the Government today received Parliamentary sanction for its digitisation programme with the Rajya Sabha passing the Cable TV Networks (Regulation) Second Amendment Bill which has already been approved by the Lok Sabha.
The Bill, which seeks to replace an Ordinance promulgated in October, will now go to the President for her assent before it is notified as an Act.
Information and Broadcasting Minister Ambika Soni said in her reply to the brief discussion that the consumer will be the main beneficiary of digitisation. She said that the consumer will now be free to choose the channels he/she wanted instead of being forced to accept the bouquets offered by the direct-to-home operators or multi-system operators. The Telecom Regulatory Authority of India (Trai) has been authorised under the Bill to fix the tariff for a-la-carte basis.
Referring to apprehensions that cable operators would be 'put out of business', she said that there were bound to be some teething troubles but the cable operators would gain in the long run. She said that the Bill will also give an impetus to the Headend-in-the-Sky programme (HITS) which will help cable operators. Capacity building programmes would be held to apprise them with new technologies.
Soni said that an enabling provision had put in place to the effect that only Rs 200,000 to Rs 300,000 would be needed by cable operators to move to digitisation.
She said around 65 per cent of the broadcasting industries all over the world relied on subscriptions rather than advertising while Indian broadcasters relied on advertising and hence did everything to get TRPs. Digitisation would give a true assessment of the subscriber base of the broadcasters and reduce dependence on advertisements. In turn, this may also lead to reduction in the vulgar content on television channels as there would be lesser dependence on TRPs.
Apart from improving the quality of reception, digitisation would also empower the cable operators to give larger number of channels to the consumers. There will be no prime band after digitisation, she said.
She said the Bill would plug revenue leakage and enable regulatory agencies to check illegal content.
The Bill has punitive clauses against cable operators, MSOs or DTH operators who failed to show the must-carry channels, including the Lok Sabha and Rajya Sabha TV channels.
While most members supported the Bill, they expressed apprehensions about the closing down of cable TV operations, and cautioned the government against exploitation of the common viewer in the form of unjustifiable hikes in the cable rates and vulgar and misleading advertisements.
The Bill aims to digitise the cable sector in the country by 31 December 2014. The Government had earlier announced a timetable for complete digitisation of cable television in the four metros by 31 March, 2012, but this was put off to June 2012 in a notification issued subsequently. The target date for completely digitising cable sector in cities with population of more than one million was 30 March 2013, all urban areas by 30 September 2014, and the whole country by 31 December 2014.
Cable digitisation gets parliamentary approval
Team
(19 December 2011 7:46 pm)
NEW DELHI: In a major step forward, the Government today received Parliamentary sanction for its digitisation programme with the Rajya Sabha passing the Cable TV Networks (Regulation) Second Amendment Bill which has already been approved by the Lok Sabha.
The Bill, which seeks to replace an Ordinance promulgated in October, will now go to the President for her assent before it is notified as an Act.
Information and Broadcasting Minister Ambika Soni said in her reply to the brief discussion that the consumer will be the main beneficiary of digitisation. She said that the consumer will now be free to choose the channels he/she wanted instead of being forced to accept the bouquets offered by the direct-to-home operators or multi-system operators. The Telecom Regulatory Authority of India (Trai) has been authorised under the Bill to fix the tariff for a-la-carte basis.
Referring to apprehensions that cable operators would be 'put out of business', she said that there were bound to be some teething troubles but the cable operators would gain in the long run. She said that the Bill will also give an impetus to the Headend-in-the-Sky programme (HITS) which will help cable operators. Capacity building programmes would be held to apprise them with new technologies.
Soni said that an enabling provision had put in place to the effect that only Rs 200,000 to Rs 300,000 would be needed by cable operators to move to digitisation.
She said around 65 per cent of the broadcasting industries all over the world relied on subscriptions rather than advertising while Indian broadcasters relied on advertising and hence did everything to get TRPs. Digitisation would give a true assessment of the subscriber base of the broadcasters and reduce dependence on advertisements. In turn, this may also lead to reduction in the vulgar content on television channels as there would be lesser dependence on TRPs.
Apart from improving the quality of reception, digitisation would also empower the cable operators to give larger number of channels to the consumers. There will be no prime band after digitisation, she said.
She said the Bill would plug revenue leakage and enable regulatory agencies to check illegal content.
The Bill has punitive clauses against cable operators, MSOs or DTH operators who failed to show the must-carry channels, including the Lok Sabha and Rajya Sabha TV channels.
While most members supported the Bill, they expressed apprehensions about the closing down of cable TV operations, and cautioned the government against exploitation of the common viewer in the form of unjustifiable hikes in the cable rates and vulgar and misleading advertisements.
The Bill aims to digitise the cable sector in the country by 31 December 2014. The Government had earlier announced a timetable for complete digitisation of cable television in the four metros by 31 March, 2012, but this was put off to June 2012 in a notification issued subsequently. The target date for completely digitising cable sector in cities with population of more than one million was 30 March 2013, all urban areas by 30 September 2014, and the whole country by 31 December 2014.
Sunday, October 30, 2011
9X to launch Marathi music channel Jhakaas on 31 October
9X to launch Marathi music channel Jhakaas on 31 October
Insearchindia.com Team
(29 October 2011 8:27 pm)
MUMBAI: Just after two months of launching its Punjabi music channel 9X Tashan, 9X Media, the company controlled by private equity firm New Silk Route, is launching its 24-hour Marathi music channel.
9X Jhakaas, with a tagline of 'Aai Shapaath' will launch on 31 October and will be the first Marathi music channel.
The Marathi television advertising market is around Rs 5 billion plus, with three general entertainment channels (Zee Marathi, ETV Marathi and Star Pravah), one dedicated movie channel (Zee Talkies) and three news channels (Zee 24 Taas, Star Majha and Ibn Lokmat), grappling for a piece of the pie. Other players in the fray include Saam Marathi, DD Marathi and Mi Marathi.
Industry sources say that 9X Media is spending heavily on distribution as Maharashtra is a priority state for advertisers as well as media planners. "Maharashtra is a P1 and very ad friendly market. If 9X Jhakaas manages to copy the success of its Punjabi and Hindi channels, it may have a bright future. The channel is definitely going to get a first-mover advantage here," a senior media planner said.
He added that the new offfering looks "rich" and "full of Marathi heritage" from the promos that he has seen.
Sources claim that unlike the Punjabi market, where 9X Tashan had spent Rs 60 million on distribution, for 9X Jhakaas, the channel will have to spend double. "Punjab has only two major MSOs, while in Maharashtra, which is a big TAM market there are 20-25 MSOs. For a good placement, 9X Jhakaas will have to spend at least Rs 100-120 million on distribution on the state," a source in the cable industry said.
On the content side, like in the Punjabi channel, 9X Jhakaas will have Marathi film and non-film music videos, including folk, popular and contemporary.
The channel will also be streamed live online on the channel's website, www.9xjhakaas.in, and to mobile phones.
9X Media would be launching two channels by year end. The company was earlier planning a Punjabi and a Bengali channel, but changed its plans and is launching the Marathi channel instead.
Similar to the Punjabi channel, 9X Jhakaas will also air a series of humorous animated shows and shorts presented by animated characters speaking in Marathi. The channel will see a new set of characters apart from 9XM's popular Bade-Chote.
The Punjabi music channel was launched on 31 August.
Insearchindia.com Team
(29 October 2011 8:27 pm)
MUMBAI: Just after two months of launching its Punjabi music channel 9X Tashan, 9X Media, the company controlled by private equity firm New Silk Route, is launching its 24-hour Marathi music channel.
9X Jhakaas, with a tagline of 'Aai Shapaath' will launch on 31 October and will be the first Marathi music channel.
The Marathi television advertising market is around Rs 5 billion plus, with three general entertainment channels (Zee Marathi, ETV Marathi and Star Pravah), one dedicated movie channel (Zee Talkies) and three news channels (Zee 24 Taas, Star Majha and Ibn Lokmat), grappling for a piece of the pie. Other players in the fray include Saam Marathi, DD Marathi and Mi Marathi.
Industry sources say that 9X Media is spending heavily on distribution as Maharashtra is a priority state for advertisers as well as media planners. "Maharashtra is a P1 and very ad friendly market. If 9X Jhakaas manages to copy the success of its Punjabi and Hindi channels, it may have a bright future. The channel is definitely going to get a first-mover advantage here," a senior media planner said.
He added that the new offfering looks "rich" and "full of Marathi heritage" from the promos that he has seen.
Sources claim that unlike the Punjabi market, where 9X Tashan had spent Rs 60 million on distribution, for 9X Jhakaas, the channel will have to spend double. "Punjab has only two major MSOs, while in Maharashtra, which is a big TAM market there are 20-25 MSOs. For a good placement, 9X Jhakaas will have to spend at least Rs 100-120 million on distribution on the state," a source in the cable industry said.
On the content side, like in the Punjabi channel, 9X Jhakaas will have Marathi film and non-film music videos, including folk, popular and contemporary.
The channel will also be streamed live online on the channel's website, www.9xjhakaas.in, and to mobile phones.
9X Media would be launching two channels by year end. The company was earlier planning a Punjabi and a Bengali channel, but changed its plans and is launching the Marathi channel instead.
Similar to the Punjabi channel, 9X Jhakaas will also air a series of humorous animated shows and shorts presented by animated characters speaking in Marathi. The channel will see a new set of characters apart from 9XM's popular Bade-Chote.
The Punjabi music channel was launched on 31 August.
Friday, August 19, 2011
Thursday, August 11, 2011
Industry fears big dip in market
Sunday | August 07, 2011
• News
• Investigation
• Analysis
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Industry fears big dip in market
MAMTA SEN MUMBAI | 7th Aug
The Sensex crash of 700 points in Mumbai on Friday is being viewed by the business fraternity as a sign of things to come.
Paresh Khandwala, CEO and MD of Khandwala Securities pointed out that the current crash is mainly due to external factors like the compounded failure of the US to control its economy and the further worsening of the European and Asian markets. "Our openings too have been very weak for some time and this appears to be a continuous process. The economy too appears to be slowing down," he said, adding that the markets have been showing a slowdown since last two days and this was expected.
Pradnya Samant of the Maharashtra Economic Development Council pointed out that the US Congress' decision to increase their ceiling on borrowing by a few hundred trillion dollars gave a clear indication that the US economy is in doldrums. "The US budget has proposed cuts in defence, foreign aid and public spending. With America reducing its imports, the exports of Japan, China and Germany too will reduce considerably and affect their economy. India on the other hand has a largest population and major consumer of commodities. So with this current scenario import will become cheaper. But we will need to increase our domestic consumption," Samant said.
Credit policy analyst Makarand Wadekar adds that the Indian market will further lose 100 points on Monday. "Most MNCs in India are dependent on US for their existence," said he.
http://www.sunday-guardian.com/business/industry-fears-big-dip-in-market
• News
• Investigation
• Analysis
• Business
• Sports
• Resources
Industry fears big dip in market
MAMTA SEN MUMBAI | 7th Aug
The Sensex crash of 700 points in Mumbai on Friday is being viewed by the business fraternity as a sign of things to come.
Paresh Khandwala, CEO and MD of Khandwala Securities pointed out that the current crash is mainly due to external factors like the compounded failure of the US to control its economy and the further worsening of the European and Asian markets. "Our openings too have been very weak for some time and this appears to be a continuous process. The economy too appears to be slowing down," he said, adding that the markets have been showing a slowdown since last two days and this was expected.
Pradnya Samant of the Maharashtra Economic Development Council pointed out that the US Congress' decision to increase their ceiling on borrowing by a few hundred trillion dollars gave a clear indication that the US economy is in doldrums. "The US budget has proposed cuts in defence, foreign aid and public spending. With America reducing its imports, the exports of Japan, China and Germany too will reduce considerably and affect their economy. India on the other hand has a largest population and major consumer of commodities. So with this current scenario import will become cheaper. But we will need to increase our domestic consumption," Samant said.
Credit policy analyst Makarand Wadekar adds that the Indian market will further lose 100 points on Monday. "Most MNCs in India are dependent on US for their existence," said he.
http://www.sunday-guardian.com/business/industry-fears-big-dip-in-market
Tuesday, June 21, 2011
My interview in sunday gurdian.
Bihari Babus want Mumbai to start Bhojpuri film awards Print E-mail
MAMTA SEN MUMBAI | 12th Jun
Bhojpuri heroine Monalisa is a Maharashtrian.
he Bihari bureaucrat lobby in Maharashtra wants the state government to come up with awards recognising Bhojpuri cinema. These bureaucrats feel that the awards will not only commemorate the 50th year of Bhojpuri cinema in 2011, but will also help Bhojpuri films attain national status. If the proposal gets cleared, the maiden awards ceremony will be held in November at Mumbai's Bandra Kurla Complex, at a stone's throw from Shiv Sena chief Bal Thackeray's bungalow Matoshree.
"Top female actors in Bhojpuri cinema such as Monalisa and Bhagyashree are Maharashtrians. Even Marathi film producers are raking in crores by producing Bhojpuri films," said a bureaucrat on the condition of anonymity.
He added that the Bhojpuri film industry is the second largest in Mumbai and it is time it got national recognition: "Mumbai is an obvious choice for such awards as Bhojpuri films are shot and produced in the city. Single-screen theatres that do not show Marathi films will screen Bhojpuri films because they are super hits and money-spinners." The bureaucrat however, dismissed the speculation that the attempt was a political move by the Congress government to control the North Indian vote bank in Maharashtra.
Ravi Shankar Srivastav, the chairman of Bihar Foundation, said that they have been urging Bihar Chief Minister Nitish Kumar to hold an award ceremony in Patna, but that they would not mind if any such ceremony is hosted in Mumbai. The foundation, which is patronised by Nitish Kumar, is controlled by bureaucrats from Uttar Pradesh and Bihar. "We thought of the Bandra Kurla Complex as the venue is centrally located and closer to Dharavi, where the Bihari population resides in large numbers," said Srivastav, who is a bureaucrat himself.
Makarand Wadekar, principal consultant of television programming company In Search, said that the popularity of Bhojpuri cinema has increased so much that the Adhikari brothers-owned SAB TV has requested the state government to give subsidy to Bhojpuri films made in Maharashtra. "SAB TV plans to produce and direct Bhojpuri films and talks are currently being held with the state government to construct infrastructure for the same," he said.
"The audience for Bhojpuri cinema cuts across all classes. These films have a huge fan following among Biharis — not just among labourers but also the educated and the elite abroad. With UP elections around the corner the Congress will use this opportunity to derive maximum political mileage. The Maharashtra government is taking a lot of interest to capture the North Indian vote bank," Wadekar said.
On 6 June, the film magazine Cine Bhojpuri hosted its maiden awards ceremony at Mumbai's Rang Sharda auditorium. Congress MP Sanjay Nirupam, who was the chief guest, is said to be planning to come up with his own award ceremony to keep North Indians in Mumbai happy.
Maharashtra Navnirman Sena spokesperson Shirish Parkar said, "We don't mind any number of Bhojpuri awards being hosted in Mumbai but will not like subsidies to be given to Bhojpuri films in Maharashtra."
MAMTA SEN MUMBAI | 12th Jun
Bhojpuri heroine Monalisa is a Maharashtrian.
he Bihari bureaucrat lobby in Maharashtra wants the state government to come up with awards recognising Bhojpuri cinema. These bureaucrats feel that the awards will not only commemorate the 50th year of Bhojpuri cinema in 2011, but will also help Bhojpuri films attain national status. If the proposal gets cleared, the maiden awards ceremony will be held in November at Mumbai's Bandra Kurla Complex, at a stone's throw from Shiv Sena chief Bal Thackeray's bungalow Matoshree.
"Top female actors in Bhojpuri cinema such as Monalisa and Bhagyashree are Maharashtrians. Even Marathi film producers are raking in crores by producing Bhojpuri films," said a bureaucrat on the condition of anonymity.
He added that the Bhojpuri film industry is the second largest in Mumbai and it is time it got national recognition: "Mumbai is an obvious choice for such awards as Bhojpuri films are shot and produced in the city. Single-screen theatres that do not show Marathi films will screen Bhojpuri films because they are super hits and money-spinners." The bureaucrat however, dismissed the speculation that the attempt was a political move by the Congress government to control the North Indian vote bank in Maharashtra.
Ravi Shankar Srivastav, the chairman of Bihar Foundation, said that they have been urging Bihar Chief Minister Nitish Kumar to hold an award ceremony in Patna, but that they would not mind if any such ceremony is hosted in Mumbai. The foundation, which is patronised by Nitish Kumar, is controlled by bureaucrats from Uttar Pradesh and Bihar. "We thought of the Bandra Kurla Complex as the venue is centrally located and closer to Dharavi, where the Bihari population resides in large numbers," said Srivastav, who is a bureaucrat himself.
Makarand Wadekar, principal consultant of television programming company In Search, said that the popularity of Bhojpuri cinema has increased so much that the Adhikari brothers-owned SAB TV has requested the state government to give subsidy to Bhojpuri films made in Maharashtra. "SAB TV plans to produce and direct Bhojpuri films and talks are currently being held with the state government to construct infrastructure for the same," he said.
"The audience for Bhojpuri cinema cuts across all classes. These films have a huge fan following among Biharis — not just among labourers but also the educated and the elite abroad. With UP elections around the corner the Congress will use this opportunity to derive maximum political mileage. The Maharashtra government is taking a lot of interest to capture the North Indian vote bank," Wadekar said.
On 6 June, the film magazine Cine Bhojpuri hosted its maiden awards ceremony at Mumbai's Rang Sharda auditorium. Congress MP Sanjay Nirupam, who was the chief guest, is said to be planning to come up with his own award ceremony to keep North Indians in Mumbai happy.
Maharashtra Navnirman Sena spokesperson Shirish Parkar said, "We don't mind any number of Bhojpuri awards being hosted in Mumbai but will not like subsidies to be given to Bhojpuri films in Maharashtra."
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