Media firm Time Warner has got board approval for acquiring Prannoy Roy-promoted NDTV's entertainment channel Imagine for $126.5 million (about Rs 592 crore).
"The acquisition will be made by Turner Asia Pacific Ventures, a Time Warner company, and Imagine will become a key part of Turner's operations in the Asia-Pacific region," Time Warner said in a statement.
Turner is investing a total of $126.5 million in this transaction, resulting in a 92 per cent stake in NDTV Imagine.
It will invest $76.5 million for 87.4 per cent stake in Imagine from NDTV Networks Plc and another minority share holder. However, it did not disclose how it intends to acquire the remaining 5 per cent.
Besides, Turner would put in another $50 million as primary capital infusion to fund business.
"India continues to be a key priority for us. Our accelerated pace of investment here underscores both our commitment to this dynamic market and our view of India's compelling long-term potential," Turner Broadcasting System Asia Pacific President Steve Marcopoto said.
Pursuant to completion of the deal, Imagine will continue to be led by Sameer Nair as Chief Executive Officer and would work in tandem with Turner's senior management.
NDTV Chairman Prannoy Roy said following restructuring, "NDTV Group will be in a position to be cash-surplus and debt -free on a consolidated basis."
{{/usCountry}}NDTV Chairman Prannoy Roy said following restructuring, "NDTV Group will be in a position to be cash-surplus and debt -free on a consolidated basis."
{{/usCountry}}