NBC Universal in talks for NDTV arm stake

US-based NBC Universal is in talks with NDTV to pick up a stake in the latter's UK-based subsidiary, NDTV Networks. The subsidiary operates NDTV Imagine and NDTV Convergence, among others.

Though the negotiations have been on for a while, no deal has been signed yet. Company insiders say that the talks with the New York-based media conglomerate are at an advanced stage, but the company could also consider private equity or initial public offer to raise money.

In an e-mailed response, however, Prannoy Roy, chairman NDTV, said: "As a policy, NDTV never comments on rumours and speculation. As a prominent media house in India, we routinely speak to many other media companies, including many global majors."

NBC Universal was formed when NBC bought into Vivendi Universal of France. It owns and operates channels such as NBC, NBC News, CNBC and motion picture company Universal Studios in the US.

Film and television company UTV Software Communications is also said to be talking to a foreign media major to offload part of its equity.

The Walt Disney Company already owns a 14.85 per cent in UTV and is said to be keen to increase it, a fact not confirmed by the company. UTV recently broke off its tie-up with the Malaysian broadcasting major, Astro Measat, for TV channels under the Bindass brand.

"We have said that the UTV Group is in serious and advanced discussions with financial or strategic investors for its broadcast venture which includes Bindass, Bindass Movies and four other channels. We believe this makes more sense strategically for the group than stand alone ventures for any one channel like Astro would have been," said a UTV spokesperson.

"All announcements with regard to other channels will be made at the appropriate time." Clearly, foreign media companies are making a beeline for presence in India's booming media and entertainment sector which is growing 15-20 per cent a year.

"Establishing their presence in the country is high on the agenda of international media companies," said Rajesh Jain, media practice head at KPMG.

While only 26 per cent foreign equity is allowed in news channels, entertainment channels can be wholly-owned by foreign players.