TV Today approves sale of FM radio business to Creative Channel for Rs 20 crore

New Delhi: TV Today Network Limited on Tuesday announced that its Special Committee of Directors, in a meeting held on February 25, 2025, approved proposals related to its FM radio broadcasting operations under Ishq FM. 

The committee authorised an MOU with Creative Channel Advertising and Marketing Pvt. Ltd. for the proposed sale of the company’s radio business, which includes three FM stations in Mumbai, Delhi, and Kolkata operating at 104.8 FM.

The transaction is valued at Rs 20 crore plus applicable taxes, with Rs 10 crore payable upon execution of the MOU and Rs 10 crore due on the closing date, subject to regulatory approvals from the Ministry of Information and Broadcasting and other compliances.

The sale may be executed directly by TV Today or through a wholly owned subsidiary, such as Vibgyor Broadcasting Pvt. Ltd., and is expected to be completed by January 31, 2026.

In FY 2023-24, the radio business generated Rs 16.18 crore in turnover, representing 1.7% of the company’s total turnover, though its net worth contribution was nil due to losses.

Additionally, the committee approved an Advertising Sales Agreement with Creative Channel, authorising the firm to sell airtime for the three radio stations. 

Creative Channel, incorporated on April 26, 1991, with an authorised capital of Rs 5.6 crore and paid-up capital of Rs 5.23 crore, will act as a sales agent for a professional fee, marketing airtime to third parties.

The decision to sell follows the Board of Directors’ resolution on January 9, 2025, to close the radio business due to industry dynamics, with further approval for the sale granted on February 11, 2025, after interest from potential buyers. 

If the sale occurs directly, it will not be a related-party transaction; if routed through a subsidiary, it will be conducted at arm’s length.