Cable TV

Competition regulator okays Goldman Sachs stake purchase in Den Networks

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2016/10/20/den-800x800.jpg?itok=V8TKFX1s

MUMBAI: Investment banking major Goldman Sachs has received the Competition Commission's approval to increase its stake in Den Networks to over 24 per cent by acquiring additional shares through preferential allotment route.

indiantelevision had reported that MSO Den Networks existing shareholder Goldman Sachs is picking up 1.58 crore equity shares at a price of Rs 90 per share via a preferential allotment. This will take Goldman Sachs’ equity stake in the cable TV service provider up from 17.79 per cent to 24.49 per cent and involve an injection of much needed capital to the tune of Rs 142.43 crore. The divestment is expected to trim promoter stake in the company to 37 per cent.

Media observers say that the Indian cable TV ecosystem – including the government, the regulator TRAI, broadcasters, MSOs and cable TV operators - has stumbled in the digitization process which was mandated by the ministry of information and broadcasting four years back. They have also been saying that investor sentiment towards the sector is pretty weak. Shares of most leading Indian cable TV companies have been depressed, and have been parked at lows. However, DEN Networks has been taking steps to correct the perception. It has brought back its CEO SN Sharma who has since been working on raising revenues and profitability.

The transaction has now been cleared by the Competition Commission of India (CCI), as per the regulator's website.

The additional acquisition would be done by the holding companies of Goldman Sachs -- Broad Street Investments (Singapore) Pte (BSIPL) and MBD Bridge Street 2016 Investments (Singapore) Pte (MBD), according to filing submitted to CCI. BSIPL and MBD are investment holding companies and are not engaged in business of manufacturing of products or the provision of service, PTI reported. Den Networks is into distribution of television channels through analog as well as digital modes.

The Goldman investment came as a shot in the arm for Den Networks as well as the Indian cable TV sector which is grappling with reinventing its business model.

Investors had greeted the Goldman Sachs announcement with delight. Den Networks had made an investor presentation in which it stated that its digital rollout is progressing well. Of the 13 million subscribers it has had, almost 9.8 million of them upgraded to digital in Q1 2017. Five million of these are in DAS Phase I & II areas with the remainder being in Phase III and phase IV.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/01/18/tv%20general.jpg?itok=WFBd0qTB
Cable Operators Welfare Federation counters IBF’s comments regarding NCF and NTO 2.0

MUMBAI: The Cable Operators Welfare Federation (COWF) has countered the IBF’s claims regarding NCF. The IBF had said that by keeping NCF at Rs 160, distributors could charge for something that DD Free Dish is giving out free. COWF said that DD Free Dish is run on taxpayers’ money and channels pay a...

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/01/17/hathway.jpg?itok=4qoqT3PW
Hathway back on growth trajectory, reports consolidated profit of Rs 68 cr in Q3

MUMBAI: After facing consecutive losses, Hathway Cable and Datacom has reported a consolidated profit of Rs 68.18 crore in the third quarter of the financial year 2019-20. The multi-system operator (MSO) had posted consolidated loss of Rs 57.87 crore in the corresponding quarter of the last...

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/01/16/Sameer-Manchanda.jpg?itok=PrkSXBdV
Den Networks reports profitable Q3 2020

Indian cable network and broadband company Den Networks Ltd (Den) reported consolidated profit after tax (PAT) of Rs 12.28 crore for the quarter ended 31 December 2019 (Q3 2020, quarter or period under review) as compared to a loss of Rs 31.21 crore for the corresponding year ago quarter (Q3 2019,...

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/01/08/vbs2.jpg?itok=IFj-cDQU
MSOs on distribution challenges post NTO

The internet has given choice to consumers to select packages and watch content of their choice. A rapid increase in the viewership on mobile and OTT platforms on a daily basis has become a threat to the DTH and cable distribution ecosystem.

Cable TV Multi System Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/31/dth.jpg?itok=nqXjgdyb
LCOs and new tariff order challenges

With the evolution of television, cable industry has gone through various challenges from competing with DTH operators to digitisation to NTO. Although implementation of NTO was the biggest challenge for the cable industry, it managed to overcome all the challenges they came across.

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/23/TiVo-and-xperi-corp.jpg?itok=oQsLVReq
TiVo to merge with Xperi Corp

Late last week, Xperi Corp  and TiVo Corp announced that they have entered into a definitive agreement to combine in an all-stock transaction, representing approximately $3 billion of combined enterprise value.

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/18/vbs.jpg?itok=IvfGCO6X
Convergence, consolidation & collaboration to fuel growth of cable, broadcast & OTT sectors

In 2019, the Indian cable, broadcast and OTT industry witnessed many fundamental changes from digital dynamics to behavioural change of broadcasters moving from B2B to B2C model to industry stakeholders adjusting to the new tariff order (NTO).

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/12/vbs.jpg?itok=bleNXGSn
VBS 2019: Broadcast industry dwells on TRAI consultation paper, NTO impact and way forward

The new consultation paper on broadcast tariffs is only seeking to address some infirmities in the earlier New Tariff Order (NTO) and will not bring any fundamental changes to the regulatory framework, says TRAI advisor Arvind Kumar at VBS 2019.

Cable TV Local Cable Operators
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2019/12/11/vbs_0.jpg?itok=0fz9ZZct
VBS 2019: Industry stalwarts discuss NTO second phase issues

MUMBAI: The sixteenth edition of the Video and Broadband Summit (VBS) organised by Indiantelevision.com has brought together industry doyens under one roof to discuss and understand the impact of the new tariff order (NTO) on the television broadcasting and distribution sector. VBS 2019 marked the...

Cable TV Local Cable Operators

Sign up for our Newsletter

subscribe for latest stories