Radio Today in talks to dilute 20 per cent to foreign strategic investor

MUMBAI: Aroon Purie-promoted Radio Today Broadcasting is planning to dilute 20 per cent equity to a foreign strategic investor, following a template that other FM radio companies in India are keen to adopt.

Radio Today is in active talks with overseas media companies as it prepares to launch the FM stations in the three metros of Delhi, Mumbai and Kolkata in March. The Living Media group company has won licenses paying a fee of Rs 280 million to operate in seven stations in the second phase of FM expansion after selling Red FM to a clutch of investors comprising infotech company Value Labs, Malaysia-based Astro and NDTV. Red FM was operating in the circles of Delhi, Mumbai and Kolkata.

"We feel we will discover the real value of our radio business by roping in a foreign strategic investor. We are ready to sell 20 per cent stake and are in discussions with a couple of companies for this," says a source familiar with the deal. A maximum of 20 per cent foreign holding is allowed in radio companies in India.

Bertelsmann and CBS are among the foreign majors who have yet to make an entry into India. The source, however, declined to name the companies which are in talks with Radio Today.

TV Today Network Ltd, which owns a slew of channels including Aaj Tak and Headlines Today, has a 10 per cent stake in Radio Today. "There is no plan to up the stake. But with a 10 per cent holding, TV Today will capture the value when a partner is roped in for Radio Today which will get reflected in the scrip price," the source says.

Foreign companies are showing interest to participate in India's FM radio business that is set for rapid growth. Mid Day Multimedia sold stake to BBC Worldwide in its radio venture while Hindustan Times Media has tied up with Virgin. Star is awaiting FIPB (foreign investment promotion board) approval to acquire a 20 per cent stake in Music Broadcast ( the company which operates under the Radio City brand), marking a re-entry into the FM radio business. The US-based Balfour Capital LLC is also investing in Noble Broadcasting Corporation, the FM radio-arm of the Chennai based Kumudham Publications.

Investors are drawn in by the prospect of radio stations appealing to youth audiences and tapping local advertising. As reported first in, IDBI picked up a 10 per cent stake in B.A.G Infotainment, the subsidiary of B.A.G Films which is engaged in the radio business.

Latest Reads
Witness the heart-warming bond unfold in the epic-adventure movie Alpha premiering on &flix, &Privé HD and Zee Café

Amidst the vast wilderness, the survival of the fittest truly determines life and death. But what happens when your fight for survival brings with it the dangers of the wild? Witness a young boy unleash his inner warrior and struggle as he travels through treacherous landscapes in the epic-...

Television TV Channels English Entertainment
Smriti Mehra elevated to Executive Vice President, Focus at Network18

After stints with Discovery Channel, Arré and Turner Broadcasting, Smriti Mehra returned home to Network18 Group last year. The company today announced her elevation as EVP – Focus, to head revenue. She will report to Priyanka Kaul – President, Marketing & Special Projects, Network18.

Television TV Channels News Broadcasting
Big Ganga launches 4 new Bhojpuri shows

Big Ganga, ZEE Entertainment Enterprise Ltd’s Bhojpuri general entertainment channel in Bihar, Jharkhand, and Purvanchal is all set to cater to the demands of its audience for original content with two hours of weekday and one hour of weekend with four new shows.

Television TV Channels Regional
New FTA channel T TV to focus on Punjabi audience

T TV, Taur Punjab Di, is the latest 24 hour free to air channel being launched by Teleone Consumers Product Pvt Ltd which is a part of DV Group of companies and is aimed at providing quality entertainment to the north Indian audience.

Television TV Channels Regional
ARG Outlier Media writes to TRAI, accuses News18 India of flouting landing page directive

ARG Outlier Media Asianet News, which owns channels like Republic TV, Republic Bharat among others, has accused TV18 Broadcast Ltd of flouting Telecom Regulatory Authority of India’s (TRAI) 3 December 2018 directive to broadcasters and distribution platform operators (DPO).

Television TV Channels News Broadcasting
“ABBY AWARDS 2019” announces the illustrious Master Jury for the Creative ABBY’s

The gold standard in advertising awards, ABBY Awards 2019 that celebrates creative excellence in the category has announced an illustrious master jury for the upcoming edition.

Television TV Shows Awards
Discovery India unveils unique short-form video destination on Dailyhunt app; Discovery Plus creates waves on the digital media

Discovery Communications India (DCIN), country’s leading factual entertainment network, has entered into a unique partnership with India’s No 1 News and local content discovery app – Dailyhunt.

Television TV Channels Factual @ Discovery
Analysis: Latest news television trends and consumption patterns

The FICCI M&E 2019 report says that 43 percent of the 885 private TV channels in India are ‘news channels’. It further states that news, which commands a 7 percent share of viewership, garnered a disproportionately high share of advertising volumes.

Television TV Channels Viewership
Kids prefer home-grown content, feature films on TV

The TV industry is growing and so is kids’ viewership. Since 98 per cent of India is still single TV homes, co-viewing is extensive and leads to better targeting options while demand for localised content and regional content are a boon to creators. Broadcast Audience Research Council (BARC) India...

Television TV Channels Kids

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories