Former Star News chief executive Ravina Raj Kohli is learnt to be in talks with WPP's media investment arm, Mindshare, to form a 50:50 joint venture that will produce entertainment content.
According to sources close to the development, the new company would have interests in television software production such as the Ekta Kapoor-run Balaji Telefilms in addition to film production and celebrity marketing.
Kohli refused to comment on the issue. But Ashutosh Srivastava, CEO, Mindshare India, said that negotiations were on and an announcement on the venture is likely to made shortly.
According to senior Mindshare executives, the deal with Kohli has also met with the approval of the company's global CEO, Dominic Proctor, who was in India last week.
During his visit, Proctor in an interview to a media website had said that Mindshare was looking to increase its marketshare by diversifying its services to sports marketing, and linking clients with films, studios and television.
Once the joint venture with Kohli is up and running, this will be WPP's first foray into developing television software anywhere in the world.
According to senior Mindshare executives, the new venture with Kohli would focus more on game shows, events and reality television content like the 'Close Up Harsha Ki Khoj' contest running on ESPNStar or the Indian Idol contest promoted by Sony Entertainment Television.
"Such programming will allow a greater interaction of our client brands with the consumers," said a Mindshare functionary. It is not for the first time that the WPP group is entering into something other than advertising.
In September last year, the company launched a new cable TV channel called T Matrix in northern India that exclusively aired Hindustan Lever Ltd's ads.
Mindshare's worldwide billings in 2004 were estimated to be close to $20 billion, and in India it controls nearly 60 per cent of the media buying business with large clients such as HLL, PepsiCo, GlaxosmithKiline and LG Electronics.
Before joining Star news, Kohli had a stint with Sony Entertainment Television as its vice-president for programming and marketing and was also the CEO of the short-lived JV between HFCL and the Australian media mogul Kerry packer owned Channel Nine.
"The move to own entertainment content would throw up immense advertising opportunities like product placements and branded programming for Mindshare. Prime time media properties and cricket matches are getting hugely expensive and with the regional diversity of choices some advertisers are feeling that they are not getting the maximum bang for their buck. As the market leader, the company can afford to look at such innovative low-cost options," said the CEO of a rival media buying house.
