MUMBAI: In what is an indication to the consolidation that might happen in the news space in Indian television, two TV news stations are talking to explore synergies between themselves.
Global Broadcast Network, owners of CNN IBN channel, is in talks with Jargran TV to explore whether Channel 7 can be made part of the GBN stable through a joint venture.
According to sources close to negotiations, exploratory talks are being held between Jagran TV, managers of Channel 7, and GBN for a deal wherein the management of Channel7 would lie with GBN’s promoters through an equal joint venture.
GBN is promoted by a clutch of professionals like Rajdeep Sardesai, Sameer Manchanda and Haresh Chawla along with Television Eighteen promoted by Raghav Bahl.
The talks envisage whether Channel7, a Hindi new channel started last year, could be part of the Television Eighteen Group’s bouquet of channel that include CNBC TV18, Awaaz and English-language CNN IBN.
Though the sources pointed out that initial talks might not fructify into a joint venture, the aim is to explore whether existing resources can be combined. Especially when Channel7 is a stand alone news channel in a space that has good enough competition from the likes of Aaj Tak, Star News and Zee News.
Information available with Indiantelevision.com indicates that GBN would like to have management and editorial control of Channel7, as well as responsibilities of selling ad space and marketing.
As and when the deal goes through, this could mean that GBN will have to absorb the existing manpower in Channel7, while getting control over the editorial content. The issue of the Channel7 brand name is still being discussed.
At the time of starting, GBN had stated that it's looking at a slew of channels, including those in Indian languages.
Jagran TV director Siddhartha Gupta told indiantelevision.com, "All these reports are baseless rumours. There is nothing of this sort happening." Still, Jagran Prakashan Limited CFO R K Agarwal said, "We are in talks but nothing has been finalised as at."
Television Eighteen, the majority shareholder in GBN, said it’s “against company policy to comment on market speculations.”
Jagran TV, part of the Jagran group that publishes the Dainik Jagran newspaper with over two million circulation, has said it invested close to Rs. 700 million in the television venture.
However, what can be a stumbling block in the deal going through is the foreign investment component in both Jagran TV and GBN’s major share holder Television Eighteen, which is almost close to the cap stipulated by the government.
Last year Jagran TV off loaded 25.7 per cent equity stake to the Mauritius based New Vernon Bharat Ltd.
Indian government norms for news channels state that channels uplinking from the country cannot have more than 26 per cent foreign investment, which includes foreign financial investors.
Time Warner had inked a co-branding partnership with the TV18 group for the English news channel CNN IBN in 2005, which is publicized as a service of Time Warner and TV 18.
