"Members of our chairman''s family have been active in Dravida Munnetra Kazhagam (the "DMK"), a dominant political party in Tamil Nadu. Although the company is non- partisan, there is no assurance that it will not be perceived as having political allegiance, and there is no assurance that such perception will not have adverse effects on our business." — One of the risk factors listed by Sun TV Network Limited, earlier Sun TV Limited, in its initial public offering prospectus.

At that time neither the company nor anybody else visualised chairman Kalanidhi Maran and his brother Dayanidhi Maran falling foul with the DMK supremo and chief minister Dr M Karunanidhi or even his family members.

Incidentally Karunanidhi is the grand uncle of Kalanidhi and Dayanidhi who are sons of the late DMK leader and union minister Murasoli Maran.

But in a sudden turn of events the mercurial union minister Dayanidhi lost his post in the union cabinet. Despite being a first time member of Parliament Dayanidhi was inducted into the Congress led ministry at the centre in 2004 as a union cabinet minister for communications and information technology.

With the change in family equations — Karunanidhi and his family members turning against the Maran brothers — the question uppermost in the minds of business associates concerns its impact on the fortunes of the listed company Sun TV Network Limited that owns a clutch of TV channels (four Tamil channels: Sun TV, KTV, Sun News, Chutti TV and Sun Music; two Malayalam channels: Surya TV and Kiran TV; five Telugu channels: Gemini TV, Teja TV, Gemini News, Gemini Music and Gemini Cable Vision and: four Kannada channels: Udaya TV, Udaya Movies, Udaya Varthegalu and Udaya TV II) along with a few FM radio stations.

A major portion of the network''s infrastructure is based in Chennai. In addition the group''s Sun Cable Vision is the largest multi system operator in Tamil Nadu.

That apart, the Sun group also owns Dinakaran and Tamil Murasu newspapers, seven FM radio stations and four magazines, with plans to start an English daily in tie up with Rupert Murdoch''s Sun and an entry in to the booming Indian aviation sector.

The question assumes significance, as DMK had given telecasting rights of the 50th anniversary celebrations of Karunanidhi as a member of the Tamil Nadu state assembly to the Sun group in preference to Raj Television Network Limited that owns Raj TV.

Now, reports of the Sun TV group having been asked to vacate its premises, owned by the DMK trust, are also in circulation.

While good programming and an early start gave the Sun group channels a lead in viewership, owning last mile connectivity — the cable operation — has also helped the Sun channels in a major way. With the ruling party now turning against the media group and if such an attitude remains long-drawn can the cable operations of the group, Sun Cable Vision (SCV) retain its near monopolistic hold on the market?

The previous AIADMK government, led by Karunanidhi''s arch political foe Jayalalitha, had tried to nationalise SCV''s operations but failed.

The stock market too seems to be asking similar questions and taking decisions. For instance on 15 May, 2007, the Sun TV scrip at National Stock Exchange (NSE) opened at Rs1,501.10 (previous close Rs1531.55) and went up to Rs1,529 and hit the intra day low of Rs1,461 and closed at Rs1,476.80. The total volume traded was 1.84 lakh shares with a turnover of Rs27.48 crore.

Kalanidhi owns a 90-per cent stake in the company.

Interestingly, Raj Television opened at Rs190.30 (previous close Rs188.65) and closed at Rs226.40, with the total quantity traded being 27.34 lakh shares with a turnover of Rs58.41 crore.

Just a coincidence?