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 Nayak,
who is taking his team along with him, will enter into a fresh
arrangement with NDTV Ltd.
As
NDTV Media CEO, Nayak and his team held 26 per cent while
NDTV had the remaining 74 per cent.
NDTV
will now buy back the shares of Nayak and his team in NDTV
Media.
Set
up in 2003, NDTV Media was offering advertising sales service
to television channels including NDTV, Mi Marathi and Sahara's
entertainment channels.
Under the new arrangement, NDTV will outsource the ad sales
services to Nayak's new company, but on renegotiated terms
of engagement.
"We
will continue to service NDTV. We will work on a commission
basis, but the fee structure is changed," Nayak said.
NDTV
said the new arrangement will save substantially on costs.
The company "will have greater control of its sales operations
and at the same time ensure continuity in its revenue stream
... while working very closely with Raj’s new organisation."
Nayak
will be freed from the NDTV brand, which had strengths but
posed questions over neutrality while pitching for new business,
and will actively pursue other clients. "We have a scale
up plan," he said.
Differences
between NDTV and Nayak had cropped up after NDTV Imagine was
not made a part of NDTV Media and an independent ad sales
structure was set up under the control of its chief executive
Sameer Nair. The Hindi general entertainment channel, many
observers felt, would have allowed NDTV Media to scale up.
NDTV
had posted a standalone revenue of Rs 3.1 billion for the
fiscal ended 31 March 2009. On a consolidated basis, NDTV
reported a revenue of Rs 4.92 billion during the same period.
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