NDTV to buy back NBC’s minority stake
Contrary to industry speculations and various interpretations of the deal signed between NDTV and NBC Universal in May 2008, NBC Universal is not increasing its stake in NDTV Networks Plc, but is instead preparing to exit the company. NDTV informed to the BSE on October 15, 2009, that it would buy back NBC’s minority stake. NDTV officials offered no other comments on the development, but there are various speculations doing the rounds on NDTV’s next investor.
NDTV informed the Bombay Stock Exchange on October 15, 2009, that the company, through its subsidiary NDTV Networks BV, had agreed with NBC Universal to buy back the latter’s 26 per cent indirect stake in its subsidiary, NDTV Networks Plc, to further “consolidate its position”. Details on the deal are not available, and officials from both companies have declined to offer any further details on the particulars of the decision.
NDTV Networks Plc is the holding company of the non-news NDTV channels and includes the company’s entertainment channels.
Since December 2008, various sections of the industry have been speculating that NBC Universal would increase its stake in NDTV. The primary reason for this was the nature of the deal signed between the two companies in May 2008 that had stated that NBC Universal had the option to up its stake and double the minority holding that it had in the company. NDTV officials had stayed clear from offering any comments on such speculations, reiterating that NBCU always had had the option to increase its stake.
While the companies involved have chosen to stay tight-lipped on the deal, various media analysts have said that NDTV would be announcing its new partner soon.
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