Television
×

Star in process of selling its 26% stake in MCCS to ABP

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/tv-images/2016/11/09/Untitled-1_9.jpg?itok=iumYrj2n

MUMBAI: Star India is in the process of transacting the sale of its 26 per cent stake in Media Content & Communications Services (MCCS), the company that owns and operates three news channels, to its joint venture partner Ananda Bazar Patrika (ABP) Group.

"We have offered our shares to ABP Group at a mutually agreed value. We are in the process of selling our entire stake in MCCS", said Star India chief executive officer Uday Shankar in an interview with Indiantelevision.com.

The completion of the transaction will free News Corp from owning any stake in a local news venture in India. Star had already disengaged itself from any involvement in MCCS and the Star brand name had been taken out of the Hindi, Bengali and Marathi news channels.

In April this year, Star and Ananda Bazar Patrika (ABP) Group had announced their divorce. MCCS, the joint venture company with Star as a 26 per cent stake owner and ABP holding the balance 74 per cent, launched Star News in March 2004, Star Ananda (Bengali) in June 2005 and Star Majha (Marathi) in June 2007.

According to a source, Star is selling its stake at a value that is not high. Shankar, however, declined to talk on this. "We do not talk about our financials. All that I can say is that we have split amicably," he said.

MCCS has operationally broken even since FY’11, from its loss of around Rs 60 million in the earlier year on a revenue of Rs 2.13 billion, according to market estimates. The company's revenue in FY'12 has crossed Rs 2.6 billion.

When asked whether Star was planning to buy a stake in NDTV, Shankar said the company had decided to exit the news business in India because of the 26 per cent FDI cap in the news sector. "We will not invest in any news venture including NDTV till the FDI cap is upped. "

Star feels that the whole economics of the TV news business in India is not working. "News Corp is not a financial investor. If you are not in the driver's seat or have no significant say in the business, it doesn't make strategic sense at all," said Shankar.

But won't the former MCCS CEO and a newsman himself miss the news business? "We have created a tremendous entertainment footprint and will now build the sports business. News is definitely a gap in our portfolio. But unless there is a change in the FDI limit, it doesn't make sense," said Shankar.

Balaji Telefilms is the other joint venture company where Star has exited from any involvement but is holding on to its 25.9 per cent stake. While Star has been wanting to sell for long, the promoters of Balaji Telefilms have not made the purchase yet as the share prices have slipped drastically over the years. In the joint venture termination agreement inked in 2008, Balaji had the right to purchase the shareholding held by Star for an aggregate price of Rs 190 per share. But that period has lapsed and Star has the right to independently find a buyer for its stake in Balaji Telefilms.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/24/she.jpg?itok=G3RyadXD
Shemaroo's third quarter numbers improve, digital revenue increases

BENGALURU: Indian integrated media content house Shemaroo Entertainment Ltd (Shemaroo) reported 15.3 percent higher y-o-y consolidated total revenue for the quarter ended 31 December 2017 (Q3 2018, the quarter under review) at Rs 132.85 crore as compared with Rs 115.22 crore in Q3 2017. Revenue...

Television Production House Online Content
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/24/aparna_0.jpg?itok=KJ80YXmR
&Prive to showcase top notch film titles at prime time

MUMBAI:  Ooh la la! Zee Entertainment Enterprises Ltd's premium English movie channel &prive has even bigger plans to tickle the fancy of its exclusive audience. The channel has announced that its prime time programming slot from 9 pm to 12 pm every day will feature some very recent gee-whiz...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/24/shukla.jpg?itok=ESo6RKy2
Star India gets IPL to change match timings for 11th edition

MUMBAI: When Star India announced that it was coughing up a jaw dropping Rs 16,347.50 crore to acquire the all media rights of the prized IPL, it signaled an era of change. And more of that is coming. Star India  has managed to convince the The IPL governing council (GC) to change the timings for...

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/23/foodfood.jpg?itok=gCF4k0Ki
FOODFOOD announces veeba cook off powered by Daawat Basmati Rice and Tata Sampann

Cooking doesn’t get tougher than this! FOODFOOD Pro an initiative of FOODFOOD, India's premier 24x7 Food and Lifestyle channel is proud to announce an intense and exciting eleven - episode series, VEEBA COOK-OFF, a challenge, that is purely ‘By the Professionals and For the Professionals'. This...

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/23/sony-max.jpg?itok=Rmc_jk74
Celebrate Republic Day with megastar league on Sony Max 2

MUMBAI: On Republic Day get ready for an all day long movie marathon with India’s iconic Hindi movie channel from Sony Pictures Networks, SONY MAX 2. Binge-watch the movies of some of Bollywood’s megastars throughout the day on 26th January with SONY MAX 2’s Megastar League. 

Television TV Channels Movie Channels
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/23/star-gold.jpg?itok=aEnqdAVj
2017 blockbuster hit 'Golmaal Again' will make its television premiere on star gold this friday

Star Gold is kicking off the year with the World Television Premiere of one of the most succesful films of 2017, Golmaal Again, that raked in over 200 crores at the box office and set it on fire with its unmatched gags and action. The film that left audiences in splits of laughter and many ‘...

Television TV Channels Movie Channels
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/23/myleeta.jpg?itok=Jp2DoL6W
BBC Worldwide India announces partnership with Applause Entertainment

BBC Worldwide India has announced a partnership with Aditya Birla Group’s Applause Entertainment that will see the two organisations working together to develop and produce Indian versions of iconic BBC formats.

Television Production House Non-Fiction
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/23/us.jpg?itok=F5fKKb42
Bring in Republic Day with the award-winning political comedy VEEP on Star World

Our 68th Republic Day is just around the corner and considering the political scenario in our country and globally, Star World has lined-up a marathon of a show that is not only entertaining but also takes a satirical view into what goes on behind-the-scenes in government policy-making and...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/01/23/icai_0.jpg?itok=Zpp1ilCw
ZEEL president - Legal & Regulatory Affairs, Mr. Avnindra Mohan conferred prestigious "CA Distinguished Achiever - 2017" Award by ICAI

Mr. Avnindra Mohan, President – Legal & Regulatory Affairs, Zee Entertainment Enterprises Ltd has been selected as the winner of the prestigious award in the category “CA Distinguished Achiever-2017” for exceptional performances and achievements by the Institute of Chartered Accountants of...

Television TV Channels GECs

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories