TV 18 to acquire equal stake in Hindi news channel ''Channel 7''

Global Broadcast News, part of the TV 18 group, would take an equal 'inter se' ownership interest in the Hindi news channel 'Channel 7' along with Jagran TV Limited of the Dainik Jagran group. Dainik Jagran is one of the prominent daily newspapers in Hindi. The editorial, production and other operations of Channel 7 would be integrated with the other channels of the TV 18 group.

Financial details of the transaction have not been disclosed.

The TV 18 group said the expansion into Hindi news space would help the company to straddle the entire spectrum of general and business news in English and Hindi. The group said the experience and respect of Dainik Jagran would be an asset to the Hindi channel.

Global Broadcast News, an unlisted company, currently owns the English news channel CNN-IBN along with Turner International, part of Time Warner Inc. The English business channel CNBC-TV18 is under the listed company Television Eighteen.

The TV18 group had recently announced a restructuring of the holding structure for the various television channels. As per the plans, the listed entity Television Eighteen would own the channels CNBC-TV18 and Hindi channel Awaaz. Television Eighteen would also hold a minority stake in CNN-IBN.

A new company called Network 18 Holdings would be created which would be listed on the exchanges separately. This new company would hold majority stakes in Television Eighteen Limited as well as Global Broadcast News which controls the English channel CNN-IBN.

Television Eighteen had reported a net profit of Rs6.93 crore, or Rs3.29 per share, for the December quarter as compared to Rs5.28 crore, or Rs3.14 per share, for the prior year quarter. Total income rose from Rs23.12 crore to Rs33.07 crore.

For the quarter ended September 2005, the company had reported a net profit of Rs4.95 crore, or Rs2.35 per share, on total revenues of Rs25.71 crore.

Television Eighteen closed at Rs515.8 (up 2.98 per cent) on the NSE on Friday.