Sun TV FM brands RED FM and Suryan FM were absent as the MIB released the list of pre-qualified bidders who can participate in the Phase III auctions late yesterday. This means that the expected resolution between Home Ministry and Sun TV has failed to materialize and the MIB has debarred the two brands from participating in the first stage of the upcoming Phase III auctions.
The list includes 21 names along with their earnest deposit money details. Earnest deposit money is 25 per cent of the total amount that the station is allowed to bid in the auctions. ENIL, which runs Radio Mirchi , Reliance Broadcast, which runs BIG FM, and HT Media, which runs Fever FM, were the three stations with highest deposits.
The govt. was hoping to realize at least Rs 500 crore via the first set of auctions. If we take the earnest deposit money as an indication then ENIL and HT Media, the two companies with the highest deposit amount, can potentially spend more than Rs 500 crore just between the two of them.
Meanwhile, RED FM is expected to go to court to challenge the decision though there has been no official confirmation from the brand at the time of writing of the article.
Is seeking legal recourse the best bet for embattled Sun TV Network?