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MUMABI:
TV 18 Group's partnership in the joint venture with media
conglomerate Viacom for general entertainment business in
India will be through Global Broadcast News (GBN).
"We
are making the investment in this joint venture through GBN.
It has a fund raising plan for this purpose," says TV
18 Group CEO Haresh Chawla.
GBN,
which is TV 18 Group's general broadcast subsidiary that runs
English news channel CNN-IBN and IBN 7, has already announced
plans to raise capital up to $200 million by way of international
offerings.
Viacom-18,
the 50:50 JV company, is likely to require an investment of
Rs 5 billion on the outer side which includes the launch of
a Hindi general entertainment channel within a year.
The
new venture will cover areas of television, film and digital
media content across numerous brands. It will include Viacom's
existing channels in India, MTV Networks, Vh1 and Nickelodeon
India. TV 18 Group's motion pictures business through Studio
18 will also move to the JV company.
"Viacom-18
already has businesses from Studio 18 and the three MTV channels.
Once Studio 18 completes its ongoing projects, the entire
film business will be under the JV operations," says
Chawla.
Viacom-18
will also launch a further suite of targeted channels in the
future from the MTV Networks portfolio as well as new brands.
Digital media content across all of the television brands
will be developed and distributed to Indian consumers. The
joint venture will also syndicate MTV network's programming
and newly produced content.
"India
is one of our priority markets for expansion internationally
and we see long-term growth opportunities. We are creating
a new JV that will transform our business in India. We are
lending our MTV brands and will be launching our other properties
inside the JV company," Viacom president and chief executive
Philippe Dauman, who is on his first visit to India, told
reporters at a news conference in Mumbai today.
Additional
cooperation in the Indian market includes joint ownership
of the management company for The Indian Film Company, which
is in the process of being listed on the Alternative Investment
Market (AIM) of the London Stock Exchange. TV 18 Group had
announced earlier that it would be raising $110 million overseas.
Viacom's
Paramount Pictures and DreamWorks studios will explore additional
opportunities for collaboration with Viacom-18 in the coming
months.
The
transaction was supported by Ambit Corporate Finance Pte Ltd
and BMR Advisors.
Commenting
on the partnership, TV 18 Group managing director Raghav Bahl
said: "Having established leadership in news broadcasting
and consumer Internet business, the TV 18 Group was poised
to make an ambitious entry into the multi-platform entertainment
space. We are delighted to do this in partnership with Viacom,
easily among the most successful entertainment Companies on
our globe. We are confident that Viacom-18 will entertain
India's burgeoning film and television audiences. Viacom-18
will also propel the TV 18 Group into the league of a truly
diversified and broad-based media conglomerate."
Added
MTV Networks vice chairman Bill Roedy: "We have a long
history of doing business in India, and it has become an integral
part of our global network. It has also been a tremendous
source of creative and cultural inspiration to our global
network for many years. This joint venture recognises our
long-term commitment to the Indian market. By combining our
successful MTVN India business with assets from the TV 18
Group, we will also support the robust film and TV production
industry, as well as fuel the explosive growth of digital
media. We are excited to partner with TV 18, one of the industry's
most dynamic companies, to serve Indian audiences across every
screen."
Shares
in GBN and Network 18 Fincap, the holding company of TV 18,
were up 5 per cent on the BSE at Rs 780.15 and Rs 599.65 respectively
while TV 18 climbed 1.9 per cent to Rs 866.
TV
18 Group also runs business channels CNBC-TV 18 and CNBC-Awaaz.
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