BENGALURU/MUMBAI: Entities in the radio business have started to play their cards for survival in the industry. The first one to make the move was Radio City when it entered in an acquisition agreement with Jagran Prakashan. Now, TV Today's Oye FM is in spotlight.
According to an announcement on the BSE, the Board has approved the sale of the radio FM business, which has seven radio stations operating in Delhi, Mumbai, Kolkata, Jodhpur, Amritsar, Patiala and Shimla.
The corporate announcement stated, "TV Today Network Ltd has informed BSE that the board of directors of the company at its meeting held on 6 February 2015, inter alia, had allotted ESOP as per TVTN Employee stock option plan 2006: Satyaky Chowdhury - 10,500; and Shams Tahir Khan - 7,500."
It further said, "The Board has approved the sale of Radio FM Business (Seven Radio Stations) and has further authorised a Committee of Directors / senior officials to negotiate the terms and conditions with potential buyers and to execute the sale, subject to requisite Statutory and Regulatory approvals."
No official information has been circulated amongst Oye FM employees giving details of such a sale. But one of the sources said that Oye FM was pretty much evaluating its position in Phase III auctions along with Oye FM's migration plans. But with the new announcement there is no clarity as to where they stand for Phase III auctions. Currently, the Information and Broadcasting Ministry is working on making the partial auctions happen as smoothly as possible. The first partial auction of FM radio phase III is for 69 existing cities for 135 channels.
This sale will not be the first for TV Today Network Limited (TVTN). In 2006, TVTN promoter, Living Media, sold the FM radio business under the brand Red FM to a consortium of investors, and later Kalanithi Maran's Sun Network bought a stake in the company.