The IBN18 Broadcast Ltd Board, which met on January 28, 2009, inter alia, approved the acquisition of 43.4 per cent stake in Viacom18 Media Pvt Ltd from BK Holdings Ltd, a subsidiary of Television Eighteen India Ltd. IBN18 has informed the Bombay Stock Exchange of its Board’s decision regarding the acquisition of additional stake in Viacom18.
With this acquisition, IBN18 will own 50 per cent in Viacom18 Media. The consideration will include $50.5 million for the transfer of stake as well as a sum of $12 million as option premium (inclusive of costs of funding).
As of December 31, 2008, IBN18 had acquired 6.6 per cent of Viacom18, which runs channels such as MTV, Vh1, Nickelodeon, and Colors.
Meanwhile, in its Q3 results, IBN18 has reported that its Hindi GEC Colors has hit revenue run-rate of over Rs 300 crore per annum. Sameer Manchanda, Joint Managing Director, IBN18, said, “The past quarter saw the spectacular run of Colors continue as it solidified its position as the clear No. 2 Hindi GEC. Shows like ‘Balika Vadhu’, ‘Jai Shri Krishna’ and the recently launched ‘Uttaran’ dominate the top shows in the GEC space.
While these are challenging times for any business, our portfolio of leadership properties in different genres, including Colors, the No. 1 English news channel – CNN IBN, the No. 1 youth channel – MTV, leading kids’ destination, Nick, along with our properties IBN7 and IBN Lokmat, makes us, arguably, the most compelling offering in the Indian television industry today.”
The company has also reported good performance of its other entertainment channels: MTV’s revenues were up 28 per cent (YoY), leading the youth entertainment genre with high stickiness; Nick’s revenues were up 96 per cent (YoY), consolidating its position as the No. 2 kids’ channel ahead of Hungama and POGO; Vh1’s revenues were up 17 per cent (YoY).