Reuters picks 26 per cent stake in Times of India’s news channel venture

Details on the forthcoming news channel from the Times Group is falling in place. News and information provider Reuters Group Plc has said in a statement issued in London this morning that it would take a 26 per cent stake in The Times Global Broadcasting Co. Ltd., a unit of the The Times Group. The initiative is a part of Reuters’ drive to build up its consumer media business.

Arun Arora, President, BCCL, while confirming the development, said that "It was an absolute pleasure dealing with the senior management team at Reuters."

Commenting on the synergies between Reuters and The Times Group, Arora said the Times Group "saw the same love, passion and commitment for news in Reuters, as is evident in BCCL", a common thread that helped accelerate the deal.

Financial terms of the deal were not disclosed. Reuters was advised on the news channel deal by Lazard India with JM Morgan Stanley working for The Times of India. The news channel would be a general interest news channel.

Sunil Lulla, Chief Executive Officer, Times Global Broadcast Co. Ltd added, "The Times Group and Reuters will enable the channel to access the best of content and practices, within India and across the world. We believe this partnership will help build a differentiated offering with depth & width, to our potential audiences and customer".

The channel will include Reuters’ branded programming from around the world. Reuters has five bureaus in India and its financial information and news business employs 821 people in the country.

The launch of a news channel marks the first move by TOI, the country's biggest media company, into news broadcasting. The news channel's revenues would come from subscriptions and advertising, Reuters said. "Working with the Times Group in this way enables us to enter India's dynamic broadcast industry and reach its rapidly growing, information-hungry audience," said Chris Ahearn, president of Reuters Media.