Top Story


Home >> Media - Radio >> Article

Why TV Today put Oye FM on the block

Font Size   16
Why TV Today put Oye FM on the block

TV Today Group announced on Friday that it is looking to sell off its radio division Oye FM, which operates 7 stations has been suffering losses recently. Interestingly for the TV Today group, this will not be the first time that it will engage in selling a radio property. Back in 2006 when the industry was on the verge of moving from Phase I to Phase II expansion, it sold of its stake in RED FM to a consortium, which included Value Lab and NDTV. Sun TV later picked up majority stake in RED FM.

According to Q3’15 filing by TV Today, it suffered a loss of Rs 1.94 crore. It also suffered losses of Rs 2.90 crore in Q3’14 and Rs 1.80 crore in Q2’15. The nine-month period results for 2015 showed a loss of Rs 6.30 crore compared with Rs 7.24-crore loss for the corresponding period last year. (All figures have been rounded off).

Rumors suggest that Oye FM could be valued as low as Rs 50 crore as the buyer will also have to shell out money for the migration fee (Migration fee for Delhi is around Rs 37 crore).

With Phase III auctions around the corner, the timing of this announcement might not be surprising as it will allow TV Today to let go of a non-performing unit. With frequencies scarcer this time in the lucrative hubs of Delhi and Mumbai, it might fancy itself to be in a better position to command a reasonable price for the sale. In fact, the lack of frequencies in markets like Delhi and Mumbai has been one of the major issues facing operators as they prepare for Phase III.

When we spoke to radio operators earlier, many pointed out the relative advantages of buying out an established channel rather than new frequencies and then investing in setting up a network from scratch. 

To Bid or Buy? It is decision time for FM Operators

Ever since the ministry has fast tracked the Phase III auctions, we have seen quite a bit of movement in the radio space. Dainik Jagran announced its entry by picking up Radio City. A couple of other regional stations are also rumoured to be on the block, with more clarity expected in the coming days.

Abhishek Punia, Co-founder and COO of ARM Worldwide, tells about how they re-branded themselves from ARM Digital to ARM Worldwide and in the process marked their presence globally

Srinivasan opens up on what prompted their recent rebrand, their foray into bus depots and developing the software that displays Bengaluru Metropolitan Transport Corporation's (BMTC) Passenger Information System for all the major bus depots in Bangalore.

Software and Technology, Consulting, Healthcare seem to be increasingly using Webinars to engage with their clients and employees

Chandy indulges in his love for reading and learning something new over the weekends

Though revenue from media operations grew by 10.6% yoy to Rs 760.8cr, the film production revenue declined by 18.0% yoy

At the inaugural one-on-one session between Aroon Purie, Chairman & Editor-in-chief of India Today Group and Anurag Batra, Chairman & Editor-in-chief BW Businessworld & Exchage4media Group, Purie spok...

At the 11th Indian Magazine Congress in New Delhi Rajdeep Sardesai, Consulting Editor, India Today, remembered the time when he used to work for Times of India