New Delhi, March 10, 2010: The government has given the go ahead to NDTV’s plan to off load its stake in NDTV Imagine and dilute its share in NDTV Lifestyle. This clears the hurdle for Turner Asia, a unit of Time Warner, to acquire a 92 per cent stake in general entertainment channel NDTV Imagine for US$50 million, and eventually 100 per cent after fresh infusion of funds.

Till then, NDTV Networks Plc., an offshore holding company for the non-news businesses of the NDTV Group, will hold 3 per cent in NDTV Imagine, while NDTV employees will hold 5 per cent stake. Film director-producer Karan Johar, who was holding a 3 per cent stake in Imagine, was bought out for US$2.9 million.

The government has also approved US-based Scripps Network Interactive’s acquisition of 69 per cent stake in NDTV Lifestyle. In November 2009, Scripps had said it will pay US$55 million for the holding, which valued the one-channel company at $79 million. The company currently broadcasts lifestyle channel NDTV Goodtimes, and plans to launch more channels under the joint venture, they had said in a statement.

Last year, the company announced that NDTV Networks had bought back coupon bonds worth US$100 million from unnamed funds that were due in 2012. The bonds were underwritten by NDTV and have been bought back at US$72.4 million. Also, the company reportedly paid US$25 million to NBCU to buy back a 26 per cent stake, which was bought by the latter a year ago for US$150 million. The broadcaster’s profitability had taken a hit due to the cash burn in the entertainment business. For now, seems NDTV can breathe easy.

Meanwhile, Walt Disney’s plan to print and publish the Indian edition of its specialty children’s magazine is yet to get government approval. The FIPB has deferred Disney’s proposal for “Disney Girl” and another specialty magazine “Art Attack”, which focuses on art and craft. They will now have to wait for the Ministry of Information and Broadcasting’s approval.

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