TV9 likely to change hands
Hyderabad, July 17: Renowned Telugu news channel TV9, according to reliable sources, is all set to change hands. PVP Ventures of Potluri Vara Prasad along with ITV Network is going to acquire the majority stake in the channel run by Associated Broadcasting Company.
Though the TV channel was reportedly on block for sale for quite a time very few had evinced interest in the deal. Three years ago a media conglomerate is learnt to have held negotiations with the channel's management but at the end the deal was fell through.
In what could be another move towards consolidation in the Indian broadcasting industry, Associated Broadcasting Company, which owns a network of news channels under the TV9 brand, has received expressions of interest from the promoters of NewsX and Hyderabad-based serial entrepreneur Prasad V Potluri after it was put on the block.
TV9 is majority-owned by iLabs Capital, which holds a 60% stake, while Asia-focused private equity fund SAIF Partners has minority shares in the company. Mumbai-based Edelweiss Capital is running the sale process.
Information TV (ITV) Network, which owns English and Hindi news channels NewsX and India News respectively, and a consortium led by Potluri placed their interests, which valued Associated Broadcasting Company at around Rs 400 crore, making them strong contenders in the fray that includes others as well.
The 10-year-old TV9 network broadcasts news in Telugu, Marathi, Kannada, Gujarati, Malayalam and English. It operates some of the channels through JVs and is said to have an operating profit of Rs 75 crore.
Associated Broadcasting Company, buoyed by this year's political campaign spends on mass media advertising, revived its sale plans after shelving it three years ago. Potluri, through his PVP Ventures Ltd, invests in real estate, media, sports and entertainment.
He is one of the largest film financiers down south and owns sports teams Hyderabad Hotshots and Kerala Blasters FC in Indian Badminton League and Indian Football League, respectively. PVP is a co-owner of the football team along with cricket legend Sachin Tendulkar.
News Posted: 17 July, 2014
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