The 2 year old technology channel, TMG (Technology Media Group) has reportedly managed to secure investments by an associate company of Sony TV. TMG Channel, part of the TMG group, which also runs a technology magazine CIO, has been known to be in the process of identifying an investor for the past few months.
Subhanjan Sarkar, CEO, TMG Channel when contacted by exchange4media refused to confirm or deny the development. It is note worthy that TMG has been reportedly trying to raise funds from the market for the last few months. After the financial institutions, which had invested the initial seed capital into the company refused to provide the second round of funding, the management has been on a look out for a new investor.
Recent reports of employees quitting TMG en masse also added to speculations about the future of the company.
Though officials at Sony TV were not reachable at the time of filing this story but our sources confirm that an associate company of Sony TV has invested close to Rs. 3 crores into the venture. Of which Rs 50 lacs has already been disbursed. The money has been invested as convertible debentures and not as pure equity.
Officials at various financial institutions, which hold a stake close to 50% in the company, confirmed the report but weren't ready to come on record. TMG was started during the heydays of the Internet and technology boom. With the bust of the Internet bubble, TMGs business model too predictably never took off and the channel was stuck with very little viewer interest and little advertising to support operations. With investments now secure and a multinational media MNC supporting the venture there just might be light at the end of the tunnel.