Reliance open offer for TV Today

Reliance Capital is making an open offer for 20 per cent equity in TV Today, the company that runs a clutch of TV channels including Aaj Tak, Headlines Today and Tez.

The Reliance Anil Dhirubhai Ambani group (R-ADAG) company has offered to buy the shares at Rs 130.50 (approximately Rs 150 crore in all), a 7 per cent discount on today's market price of Rs 140.20

Reliance Capital has already increased it stake in the TV company from 12 to 15 per cent through secondary market operations. Under Securities and Exchange Board of India guidelines, any party that buys more than 15 per cent in a company has to make an open offer.

Confirming the development, an R-ADAG spokesperson said, "We see this as an investment and it would not affect the management or control of the company."

However, Anil Mehra, director, TV Today, said, "We have not heard that Reliance Capital has increased its stake from about 12 per cent to 15 per cent, so we cannot comment. They should make their intent clear. If it's only an investment, we have no problems." Living Media, which also owns the India Today group of publications, controls 55.69 per cent of the TV company.

TV Today has a market capitalisation of only Rs 812.87 crore, against Rs 3,729.94 crore for TV18 (which runs CNBC) and Rs 2,037 crore for NDTV. Reliance Capital has equity in a clutch of media and entertainment entities which include TV18, NDTV, GBN, Zee Telefilms and even the Deccan Chronicle.

It made its big entry in the entertainment sector by acquiring a majority stake in Adlabs, which makes films, and has a bevy of multiplexes across the country.

It also recently picked up a majority equity stake in Synergy Communications, a TV production house which makes the popular game show Kaun Banega Crorepati 3.

Media industry turns hot job market

Media and entertainment industry is likely to offer maximum employment opportunities by 2013, says an official report.

According to a statistical report presented by the department of labour, media industry would experience an annual growth of 18 per cent and employment growth of 27 per cent followed by automobile 15.6 per cent and 20.8 per cent respectively.

Indian media, which grew at 20 percent in 2006, is held in high esteem in the world for its content and analytical ability. However, in order to sustain the credibility the industry has to shift its focus from quintessential reporting to something new so as to take a lead in the developing markets, say experts.

The study predicts about 760 million youth are likely to enter the job market by 2020. Other sectors like manufacturing and capital-intensive firms would have to contribute enormously to occupy the new entrants.

The IT-ITES would have a 22 per cent annual industry growth with employment growth of 19 per cent. The retail services which provided maximum employment of 25.8 per cent during 1999-2000 would fall drastically to a mere eight per cent during 2006-2013.

NDTV to take on STAR TV in entertainment industry

Eyeing to dislodge Star from the top slot in the Hindi entertainment segment, Prannoy Roy-promoted media giant NDTV on Monday said it was in talks with major producers, including Ekta Kapoor, for serials on its to-be-launched channels.

The group would launch three channels under its new entertainment venture - NDTV Imagine, which will be headed by Star's ex-CEO Sameer Nair, credited with turning Star networks' fortunes with programmes like Kaun Banega Crorepati and plethora of hugely popular 'Saas-Bahu' serials.

"We will launch the first general entertainment channel in Hindi by the end of this year or early next year. We are in conversation with all major producers including Ekta Kapoor for producing serials on our channel," NDTV Imagine CEO Sameer Nair said. The second channel would be a movie channel, which would be launched around March, 2008. Nair, however, did not disclose the details of the planned third channel.

NDTV had recently got approval from FIPB for foreign investment to the tune of Rs 585 crore (Rs 5.85 billion) for its foray into entertainment and lifestyle space. "Most of this investment (from Rs 585 crore) will be into NDTV Imagine," he said without divulging the exact figures.

Earlier this year, NDTV had announced a tie-up with Karan Johar's Dharma Productions for the venture. Karan Johar will be the creative consultant and the ambassador of the NDTV brand. The company is also in discussions with leading production houses such as Hats Off and Synergy to come with new and different shows on its channel, which will target audience in the age group of 6-60 with a variety of programmes.