| Web18
has clocked revenues of Rs 176.15 million
and Rs 123.24 million for the third and second
quarters of the current fiscal. The company
expects to post an income of over Rs 500 million
in 2007-08.
"Though
Web18 revenues are still small, the valuation
of the Internet business will lie in future
potential earnings. And we are building
strong verticals. We are the best poised
Indian company to create a strong bundle
of Internet properties," the source
says.
Meanwhile,
the GBN board has approved a proposal to
raise up to Rs 6 billion through qualified
institutional placement (QIP). The company
has also got FIPB (foreign investment promotion
board) clearance to raise up to Rs 5 billion.
GBN
needs to raise money to fund the joint venture
with Viacom. TV18 Group's investment in
the JV will be $90.5 million. While BK Holding
Mauritius Ltd, a wholly owned TV18 subsidiary,
is putting in $50.5 million upfront into
Viacom18, the balance $40 million will be
pumped in by GBN. Since GBN will be TV18
Group's equity shareholder in Viacom18,
it has the option to acquire the shareholding
of BK Holding. GBN, in effect, needs to
pump in the entire $90.5 million over three
years.
GBN,
which is planning to change its name, will
also need to invest in regional news channels.
It has already entered into an equal joint
venture with Lokmat to launch a Marathi
language news channel. "We are ready
for the launch and are awaiting regulatory
approvals," the source says.
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