United Television (UTV) has decided to merge Tele Shopping Network, its loss making telemarketing outfit, with itself. UTV started its consolidation process almost a year back in order to create a global media company. The proposed merger of TSN with UTV will also help the group fetch good valuation at the time of its initial public offering, according to analysts.
The Rs 175 crore UTV group plans to consolidate its businesses and is in the process of swapping shares with other partners in the associate companies - USL, Vijay TV, UTV Singapore, UTV Malaysia and UTV Interactive. Post-consolidation, the company will become a pan- Asian media and entertainment company, based in India, Singapore and Malaysia.
It is also understood that the telemarketing arm has been incurring huge losses during the past six years of its existence. The losses amount to an average of over Rs 20-30 million annually. TSN.com, which was an online shopping portal, has already shut down its operations two months back due to lower-than-expected revenues and high infrastructure costs.