NDTV Sells 49% Stake In Lifestyle

Forms strategic alliance with the Malaysian broadcaster Astro All Asia Networks Plc; gets Rs.182 crore.

Rajat Arora | Delhi | September 22, 2010

New Delhi Television Ltd (NDTV) has decided to sell 49% stake in its lifestyle channels business to a subsidiary of Malaysian broadcaster Astro All Asia Networks Plc for $40 million (around Rs.182 crore). The Indian media conglomerate has formed a strategic alliance with the Malaysian broadcaster. NDTV Lifestyle operates NDTV Good Times, an English-language lifestyle channel while Astro All Asia Networks Plc is a cross-media group with significant presence in DTH (Direct-To-Home) TV services, commercial radio and TV programming.

Informing about the deal to Bombay Stock Exchange, NDTV said, Astro unit South Asia Creative Assets Ltd will acquire the stake in NDTV Lifestyle Holdings Pvt. Ltd in two portions, with NDTV holding the remaining 51%.

In addition to operating NDTV Good Times, NDTV and Astro may also engage in non-material diversification into complementary lines related to the lifestyle segment through the joint venture company.

According to highly places sources in NDTV, the funding would be used for company's growth plans while looking to become debt free.

Earlier in May this year, NDTV terminated an agreement with Scripps Networks Interactive Inc. for the sale of a 69% stake in its lifestyle channel business.

Rajat.Arora@BestMediaInfo.com

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