NDTV sells majority stake in GoodTimes to US-based Scripps
20 Nov 2009
The NDTV Group on Thursday announced that US-based Scripps Networks Interactive is picking up a 69 per cent stake in its lifestyle programming subsidiary, NDTV Lifestyle, which runs the lifestyle channel NDTV GoodTimes, for $55 million.
Scripps Networks and NDTV Group have reached a definitive agreement on the transaction, which is expected to be completed by the end of the first quarter of 2010, the two companies said in a joint statement on Friday.
The NDTV Group will own the remaining 31 per cent stake in NDTV Lifestyle. The transaction values NDTV Lifestyle at more than $79 million. The deal by the US media company is being seen as a part of its plan to expand internationally.
Scripps Networks Interactive and NDTV Group are contemplating the eventual launch of other lifestyle television channels through the NDTV Lifestyle partnership, the companies said.
In a separate announcement, NDTV Networks informed the stock exchanges that it has bought back $100 million step-up coupon bonds due in 2012 for $72.4 million. The purchase has been financed through bank loans. The repurchase has allowed NDTV Networks Plc to significantly reduce its outstanding borrowings and also cut down on interest burden.
NBC had picked up a 26 per cent stake in NDTV Networks for $150 million, valuing the firm at $577 million early last year. At that time NBC was also given an option to up its stake to 50 per cent in two years. NDTV announced in October that it would buy back NBC's stake in NDTV Lifestyle, which was reportedly done at $25 million.
