NBC Universal to acquire 26 per cent stake in NDTV

22 January 2008

NBC Universal and NDTV today signed an agreement under which the US-based broadcaster will acquire a 26-per cent stake in NDTV Networks, the holding company for NDTV Ltd's entertainment and lifestyle channels, digital media and other interests, including media products and services.
 
The agreement also includes an option for NBC Universal to increase its stake to 50 per cent in the JV company through which NBC Universal plans making the investment, at a fair market value in the next two years.

In April 2007 Jeff Zucker, president and CEO, NBC Universal, had announced the broadcaster's decision to more than double the size of its international operations in the next three years.

"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." said Zucker about the proposed alliance with NDTV, promoted by its chairman, Dr Prannoy Roy, well-known psephologist. "The Indian TV market is growing at 16 per cent annually, which provides huge opportunities now and into the future".

Roy, who is the chairman, and majority shareholder of NDTV, said, "Today, two pioneers in the television history of the world's two largest democracies have come together to cater to a dynamic and demanding set of viewers."

The channels operated by NDTV Networks include NDTV Imagine, a Hindi general entertainment channel, which it launched yesterday, and lifestyle channel NDTV Good Times.

NDTV Emerging Markets is a consulting business that establishes news channels in countries outside India. This division, owned jointly by NDTV Ltd and NDTV Networks, has so far launched channels in Indonesia, Malaysia and the Middle East.