NBCU Acquires Stake in Indian Broadcaster NDTV
26% Stake in India’s Largest TV Conglomerate Could Increase to 50% in Two Years
By Alex Weprin -- Broadcasting & Cable, 1/22/2008 9:23:00 AM
NBC Universal acquired a 26% stake in NDTV, India’s largest TV conglomerate.
The deal also includes an option that could see NBCU increase its stake in the company to 50%, subject to consent and approval. That option would be exercisable in two years at fair market value.
"This will be a significant investment for NBC Universal in an important emerging market and further illustrates our commitment to expand our company internationally, particularly in high-growth areas,” NBCU chairman Jeff Zucker said in a statement. “The Indian TV market is expected to grow at 16% annually, which provides huge opportunities now and into the future”
NDTV owns and operates a number of television channels and related businesses in India, including recently launched networks NDTV Imagine, an entertainment channel, and NDTV Good Times, a lifestyle channel aimed at middle-class Indian families.
In addition to acquiring a stake in the networks, NBCU will have a stake in NDTV’s digital business unit, NDTV Convergence, and NGEN, an outsourcing business that provides outsourcing services for video editing, logging and graphics.
