Speculation of Aditya Birla Group eyeing a stake in the TV Today Network has been doing rounds for a while and the effect of the rumour is already visible on the TV Today share price.
The company’s scrip on April 9, 2012 was up by over 15 per cent and closed at Rs 68.10 on the Bombay Stock Exchange (BSE). Today the company share has opened at Rs 69.65. On National Stock Exchange, it had closed at Rs 67.85 and opened on April 10, 2012 at Rs 69. This is at a time when the BSE sensex has been on a decline and had dropped 49.7 points during early trade in the morning.
It is understood that Aditya Birla Group is looking to acquire a 26 per cent stake in the news media company and according to industry sources the value discussed is Rs 300 crore, implying a valuation of about Rs 1000-1100 crore.
At present, the Aditya Birla Group does not have any companies in the media sector.
TV Today Network operates news channels such as Aaj Tak, Headlines Today, Dilli Aaj Tak and Tez. Living Media India, TV Today’s parent company owns 57.1 per cent in TV Today Network. Living Media is also involved in other media businesses in the print space and owns Thomson Press.
TV Today officials did not respond to exchange4media’s queries on the development.
It is understood that Ambit Capital is involved in the deal. Industry sources informed that TV Today was also in conversation with other companies for an investment.