DTH

Goel & Dhoot speak Dish TV-Videocon d2h merger

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/11/14/dishtv%26videocond2h.jpg?itok=ktU08yov

MUMBAI: It was earlier this year that mainstream media was going berserk with the speculation that India’s largest pay TV operator Dish TV was going to acquire the the Dhoot family run rival DTH service Videocon d2h. Repeated denials by Dish TV did nothing to restrain hacks from reporting that an acquisition was almost done. But the facts are out now. Speaking to CNBC TV18 last weekend Dish TV India managing director Jawahar Goel said that “the arrangement of the scheme is merger and we never envisaged a buyout.” Which is probably why most journos got it wrong.

Goel informed CNBC TV18 that he would be chairman & managing director of the new entity, while Saurabh Dhoot will be the deputy managing director. The Dhoot family can also appoint another nominee as vice-chairman of the board. The merger will result in a new pay TV operator with 27.6 million subscribers, commanding 16 per cent or so of the Indian pay TV market.

“The two brands Dish TV and Videocon d2h will continue to operate as distinct brands in the market,” Dhoot clarified to the business news channel.

He added that “both the families - the Goel family and the Dhoot family are very closely associated since a decade, this is really a family affair.”

Post the merger, Dish TV and the public will end up with 36 per cent equity each, while Videocon d2h will have 28 per cent of the equity of Dish TV Videocon. Dhoot further clarified that “Dish TV shareholders would comprise of in terms of ownership of the new entity of 55.4 percent and so around 45 percent would be owned by Videocon D2H shareholders. Dish TV shareholders would own something like 1066 million shares, Videocon d2hshareholders would own 857 million shares and this is an all stock combination swap ratio reflecting the relative values of each business across operating like financial and trading metrics. So subscribers and subscriber addition is factored in, revenue, earnings before interest, taxes, depreciation, and amortization (EBITDA) and growth is factored in and trading metrics are also factored in, so the combination combine Dish’ scale and profitability with d2h scale and growth and the scale and efficiency benefit emanating from such a combination will be a win-win for all stakeholders.”

Goel pointed out that the merger will likely take around seven to eight months and the benefits of the reasonably debt cost that Dish TV enjoys will be passed on to the merged entity. Said he: (The debt) will be around Rs 2,100 crore and EBITDA as reported in the last financial numbers in the past it is around Rs 1,800-1,900 crore…. and the debt will definitely will be the Dish TV debt, which will be coming at the same price or a better price going forward - - so the problem of high cost of debt should not be there.”

But, most importantly, added Dhoot that “the merger would lead to significant cost synergies as well as enhance our ability to grow alternate revenue streams like carriage, advertising, value added services, new channel launches and these are all highly margin accretive. So the proposed combination shall create scale benefits for all stakeholders. There will be better growth opportunities for employees, sales and service networks, larger distribution network, but from an economic standpoint for our shareholders, which includes the existing Dish TV and Videocon D2H shareholders the merged entity will drive value unlocking from combine sourcing, purchasing, product development, improved distribution, customer service and net support, network and infrastructure consolidation and capex. “

Clearly, one plus one could end up being more than two in this case.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/10/dish.jpg?itok=e7xMenDc
Dish TV, Videocon d2h merger impacted global TV subscriber numbers

The merger of India’s two direct-to-home (DTH) players, Dish TV and Videocon d2h partly played a role in the loss of over five million subscribers or 1.14 per cent in the first quarter of 2018, as per the global report of TV subscribers released by Multiscreen Index.

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/07/10/DISH_TV.jpg?itok=uHPhBkHX
Dish TV reports profits in first full quarter post merger with Videocon d2h

Indian direct to home (DTH) behemoth Dish TV India Limited (Dish TV) reported profit after tax (PAT) of Rs 22.5 crore for the quarter ended 30 June 2018 (Q1 2019, quarter under review). Dish TV and Videocon d2h were merged on 22 March 2018 and hence Q1 2019 was the first full reporting quarter for...

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/29/dish.jpg?itok=UlD1KhLH
Dish TV targets double customer base in Tamil Nadu

The leading direct-to-home (DTH) brand Dish TV wants to strengthen its customer base in Tamil Nadu, the biggest market for the company.

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/26/dish.jpg?itok=sUoL923M
Dish TV India concludes Grand Finale of M&E and Broadcasting industry’s first ever Hackathon

Dish TV India Limited, world’s largest single-country DTH Company, held the 30-hour Grand Finale of India’s first and largest M&E and Broadcasting industry hackathon ‘Dish-a-thon’ on June 23-24 2018 at CoWrks, Gurugram.

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/ThinkAnalytics.jpg?itok=wKq371Hl
Tata Sky inks deal with ThinkAnalytics for personalised content recommendations

MUMBAI: Leading DTH brand Tata Sky has selected content recommendation Engine ThinkAnalytics to power its personalised content recommendations across connected devices. The yet-to-be-launched service will be available on Tata Sky’s applications across mobile and PC platforms to begin with.

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/19/dishtv.jpg?itok=YKKaSnum
Dish TV India Limited achieves ISO 27001 certification

Dish TV India Limited, world’s largest single country DTH Company, has achieved the ISO 27001 Certification, the international standard that sets out and describes requirements and best practices for an Information Security Management System (ISMS). Dish TV India has received ISO 27001...

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/14/hd.jpg?itok=qi0Ym1n2
Rakesh Jhunjhunwala picks up Dish TV shares worth Rs 93 crore

Indian billionaire investor Rakesh Jhunjhunwala-owned Rare Enterprises on Wednesday picked up 1.30 crore shares in the direct to home service provider Dish TV. Following the move, the Dish TV India's share price rallied as much as 3.5 per cent on Thursday morning.

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/11/dishtv.jpg?itok=mU4kfEab
Impending tariff order implementation pushes Dish TV to sign short-term contracts

MUMBAI: Keeping in mind the recent Madras High Court judgement in regard to tariff order and interconnect regulation, India’s largest direct to home (DTH) brand Dish TV India is now focussin on short-term deals. As the recent judgement brought tariff-order closer to the reality, the DTH brand’s...

DTH DTH Operator
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/07/reliance.jpg?itok=8asdkphQ
Reliance BIG TV joins hands with 50,000 Indian Post Offices for HD DTH set top boxes

MUMBAI: DTH player, Reliance Big TV, after announcing zero cost entertainment to 130 crores Indians, has partnered with 50,000 Indian Post Offices across Rajasthan, Punjab, Uttarakhand, Andhra Pradesh, Karnataka, Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland and Sikkim for...

DTH DTH Operator

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories