TV18 To Buy 50% Stake In MTV India For Rs. 200 Crore
By Anupama Chandrasekaran - Thu 02 Aug 2007 05:39 PM PST
The Television Eighteen Group (TV18) is picking 50 percent equity stake for Rs. 200 crore in MTV Networks India (MTVI), a unit of U.S. media company Viacom that markets and distributes of TV channels MTV, VH1 and Nickelodeon. The deal is apparently part of the 50:50 joint venture between Viacom and the TV 18 Group announced in May this year. [via The Economic Times] But it wasn’t known at the time of the creation of the joint venture Viacom-18 that TV18 would directly pick up equity in MTVI.
The TV 18 Group is investing through a wholly-owned Mauritius entity BKH Holdings, which will raise funds for the deal. Viacom will receive royalty payments from MTVI equaling 2% of net revenues for use of Viacom brands and is also expected to receive 1% of MTVI’s net revenues as technical assistance and consultancy fees.
