New Delhi Television Ltd (NDTV) and Malaysian media group, Astro All Asia Networks (Astro) have undergone a strategic tie up for NDTV lifestyle channels in India. Under the plan, South Asia Creative Assets Limited (a subsidiary of Astro) will acquire a 49% stake in NDTV Lifestyle Holdings Private Limited in two tranches for $40 million (Rs 185 crore). The deal with South Asia Creative Assets values NDTV Lifestyle at Rs 375 crore.
NDTV will own the balance 51% stake in the joint venture. The company may also diversify into complementary lines related to the lifestyle segment. Besides valuation, another aspect of the transaction is strategic control. In the earlier deal, NDTV would have clearly become a junior partner with a company that specializes in lifestyle TV programming.
Astro also has investments in pay television and radio broadcasting in India and most recently had sealed a deal to pick 50% stake in New Delhi-based GETIT Infoservices.
