NDTV buys out Living Media's stake in Radio Today Broadcasting
By New Delhi: | 05 Jan 2006
New Delhi: Prannoy Roy-promoted NDTV has made an entry into the private FM Radio segment by acquiring India Today's stake in radio venture 'Radio Today Broadcasting'. With this the Living Media Group has exited the FM radio business by divesting its entire holding in Red FM to a group of investors that includes NDTV News.
Other members of the consortium buying Red FM, currently in operation in Delhi, Mumbai and Kolkata, are Hyderabad-based Value Labs and Malaysian broadcasting company Astro.
The government is at present in the process of awarding the second round of FM radio licences and last week opened the bids for 13 cities.
Yesterday BBC Radio had announced a Rs31.8-crore deal to acquire a stake in Radio Mid Day.
The companies have not disclosed the exact structure of the joint venture or the financial details of the deal. Sources close to the development said Value Labs is the largest shareholder in the consortium. It has formed a joint venture with Astro, which, in turn, has formed another joint venture with NDTV for the acquisition.
Astro is believed to have taken 20 per cent stake, which is the maximum foreign investment allowed in private FM radio.
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