ankit
18-01-07, 07:13 PM
Star Group plans to pick up 20 per cent in Music Broadcast Pvt. Ltd. (MBPL), marking a re-entry into the private FM radio business.
Currently, there are two investors in Music Broadcast Pvt. Limited (MBPL) ? the company which owns Radio City in India ? India Value Fund, which owns 75 per cent stake, and Radiovani (owned by Pramod Mittal) which has 25 per cent stake.
The stake will be picked up from India Value Fund (IVF), a venture capital fund, which currently holds 75% in MBPL. With Star?s investment, the fund?s holding will drop to 55%. While the deal has been agreed by both companies in principle, Star is currently seeking the FIPB approval to go ahead with the investment.
In May 2005, Star had discontinued its arrangement of supplying content to MBPL. Later in the year the country’s biggest television network in terms of revenue also ceased doing air time sales for Radio City. Star had earlier sold its stake for $300 million in MBPL, which holds licenses for operating the Radio City brand name FM radio channel in Delhi, Mumbai, Bangalore, Lucknow, Hyderabad, Jaipur and Chennai. Star, through its subsidiary Digiwave, was the sole content provider to the MBPL channel.
This arrangement does not, however, imply that STAR India will supply content or ad sales support to Radio City as was the arrangement in past. But Yash Khanna, head of corporate affairs, STAR India, says, “Though this is purely an investment from our side, we will work closely with Radio City from now on in terms radio partnership and sponsorship.”
Since the inception of Radio City, MBPL had contracted Star to provide its expertise in the areas of programming, ad sales and marketing. Khanna explains, ?Now, with the Government allowing FDI in radio and looking at the lucrative and growing medium that radio is, we have decided to invest in Radio City.?
http://news.tv4india.com
Currently, there are two investors in Music Broadcast Pvt. Limited (MBPL) ? the company which owns Radio City in India ? India Value Fund, which owns 75 per cent stake, and Radiovani (owned by Pramod Mittal) which has 25 per cent stake.
The stake will be picked up from India Value Fund (IVF), a venture capital fund, which currently holds 75% in MBPL. With Star?s investment, the fund?s holding will drop to 55%. While the deal has been agreed by both companies in principle, Star is currently seeking the FIPB approval to go ahead with the investment.
In May 2005, Star had discontinued its arrangement of supplying content to MBPL. Later in the year the country’s biggest television network in terms of revenue also ceased doing air time sales for Radio City. Star had earlier sold its stake for $300 million in MBPL, which holds licenses for operating the Radio City brand name FM radio channel in Delhi, Mumbai, Bangalore, Lucknow, Hyderabad, Jaipur and Chennai. Star, through its subsidiary Digiwave, was the sole content provider to the MBPL channel.
This arrangement does not, however, imply that STAR India will supply content or ad sales support to Radio City as was the arrangement in past. But Yash Khanna, head of corporate affairs, STAR India, says, “Though this is purely an investment from our side, we will work closely with Radio City from now on in terms radio partnership and sponsorship.”
Since the inception of Radio City, MBPL had contracted Star to provide its expertise in the areas of programming, ad sales and marketing. Khanna explains, ?Now, with the Government allowing FDI in radio and looking at the lucrative and growing medium that radio is, we have decided to invest in Radio City.?
http://news.tv4india.com