STAR in talks to acquire majority stake in Asianet
10 Apr, 2008
BANGALORE/MUMBAI/KOCHI: STAR India has entered into discussions with Rajeev Chandrasekhar-led Jupiter Entertainment to buy a majority stake in satellite television broadcaster Asianet Communications, multiple sources said.
It is believed that STAR is negotiating to acquire a 51% stake in the southern broadcaster with operations currently in two languages, Malayalam and Kannada, and close to entering Telugu.
Sources said discussions were in active mode with STAR mulling a takeover independently. A possible acquisition would give STAR a foothold in three southern markets, while it already has presence in Tamil through STAR Vijay.
Last year, STAR entered into a joint venture with Balaji Telefilms to come up with general entertainment channels in southern languages. However, according to sources, Balaji Telefilms is not part of the ongoing discussions with Asianet. STAR India declined to comment on speculation, while a Jupiter Entertainment spokesperson said the information was “speculative and untrue”.
But there could be a twist in the tale as one of Asianet’s original promoter and NRI businessman Dr Reji Menon is believed to have expressed interest in buying back majority control in the company. He sold majority interest to Mr Chandrasekhar two years back, but still holds a substantial minority stake pegged at around 35%.
Sources said Dr Menon approached the Chandrasekhar camp with a buyback idea, but the proposal has not made much headway till now. “I have thought about it sometime back, not now. However, I am not saying yes or no to your question at the moment,” Dr Menon said, when contacted. He declined to divulge his shareholding details in the company.
Mr Chandrasekhar acquired 51% stake in Asianet Communications in October 2006 leaving the rest with Dr Menon, Asianet MD K Madhavan and Zee Group. Zee’s holding was estimated at 3% at that time. The latest shareholding pattern could not be ascertained immediately. Asianet was a pioneer in regional satellite broadcasting when it started operations in Malayalam in the early 90s. It currently operates three channels in Malayalam.
Since the acquisition, Mr Chandrasekhar expanded Asianet into Kannada with two channels under Survana brand. The company has a significant presence in the Malayalam and Kannada advertising market estimated at over Rs 500 crore annually.
Asianet is expected to foray into Telugu in june this year with two channels under Sitara brand. Interestingly, Jupiter Enterianment had talked about taking Asianet Communications public in the near future eventhough rumours surfaced at regular intervals about a strategic sale. In fact, Star India’s name as a suitor was doing the rounds even when Mr Chandrasekhar cliched a transaction with Dr Menon in the past.
STAR in talks to acquire majority stake in Asianet- Media-Media / Entertainment -News By Industry-News-The Economic Times
10 Apr, 2008
BANGALORE/MUMBAI/KOCHI: STAR India has entered into discussions with Rajeev Chandrasekhar-led Jupiter Entertainment to buy a majority stake in satellite television broadcaster Asianet Communications, multiple sources said.
It is believed that STAR is negotiating to acquire a 51% stake in the southern broadcaster with operations currently in two languages, Malayalam and Kannada, and close to entering Telugu.
Sources said discussions were in active mode with STAR mulling a takeover independently. A possible acquisition would give STAR a foothold in three southern markets, while it already has presence in Tamil through STAR Vijay.
Last year, STAR entered into a joint venture with Balaji Telefilms to come up with general entertainment channels in southern languages. However, according to sources, Balaji Telefilms is not part of the ongoing discussions with Asianet. STAR India declined to comment on speculation, while a Jupiter Entertainment spokesperson said the information was “speculative and untrue”.
But there could be a twist in the tale as one of Asianet’s original promoter and NRI businessman Dr Reji Menon is believed to have expressed interest in buying back majority control in the company. He sold majority interest to Mr Chandrasekhar two years back, but still holds a substantial minority stake pegged at around 35%.
Sources said Dr Menon approached the Chandrasekhar camp with a buyback idea, but the proposal has not made much headway till now. “I have thought about it sometime back, not now. However, I am not saying yes or no to your question at the moment,” Dr Menon said, when contacted. He declined to divulge his shareholding details in the company.
Mr Chandrasekhar acquired 51% stake in Asianet Communications in October 2006 leaving the rest with Dr Menon, Asianet MD K Madhavan and Zee Group. Zee’s holding was estimated at 3% at that time. The latest shareholding pattern could not be ascertained immediately. Asianet was a pioneer in regional satellite broadcasting when it started operations in Malayalam in the early 90s. It currently operates three channels in Malayalam.
Since the acquisition, Mr Chandrasekhar expanded Asianet into Kannada with two channels under Survana brand. The company has a significant presence in the Malayalam and Kannada advertising market estimated at over Rs 500 crore annually.
Asianet is expected to foray into Telugu in june this year with two channels under Sitara brand. Interestingly, Jupiter Enterianment had talked about taking Asianet Communications public in the near future eventhough rumours surfaced at regular intervals about a strategic sale. In fact, Star India’s name as a suitor was doing the rounds even when Mr Chandrasekhar cliched a transaction with Dr Menon in the past.
STAR in talks to acquire majority stake in Asianet- Media-Media / Entertainment -News By Industry-News-The Economic Times
