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General News TV Today acquires holding co Living Media’s digital biz for Rs 19.98 cr
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MUMBAI: TV Today Network is acquiring the digital business of its promoter and holding company Living Media India Limited (LMIL) for Rs 19.98 crore.

The acquisition price includes the book value of net tangible assets of approximately Rs 13.88 crore, subject to closing adjustments percentage of shareholding/control acquired and/or the number of shares acquired.

The company said it will acquire the operations of digital business from LMIL on a slump sale basis for a consideration in cash.

The transaction is expected to close in approximately three months. Since LMIL is a promoter and holding company of the company, the acquisition will be a related party transaction. The company will obtain necessary approvals as may be required under the applicable laws including under the Act.

TV Today said that the transaction would be undertaken on an arms’ length basis.

Presently, the digital business is run jointly by the two companies. The digital business carries operations which support revenue of Rs 44.75 crore generated on Intellectual property rights (IPR’) of the company and LMIL.

After the acquisition, TV Today will run the digital operations for both the companies. Rights of LMIL’s digital IPR would be given to the company on royalty through a separate license agreement on arm’s length basis. LMIL is the publisher of general and niche magazines like India Today, Business Today and Money Today.

TV Today said that the acquisition of the digital business from LMIL will enable it to operate and grow its digital business on its own. Earlier, the company had outsourced its IPR related to its digital business to LMIL to use it along with the Company’s content on digital platforms, pursuant to a licence agreement.

The digital business’ revenue in FY17 was Rs 44.75 crore. In FY15 and FY16, the same stood at Rs 37.74 crore and Rs 43.15 crore.

TV Today Network’s net profit for the quarter ended 30 September was up 31% at Rs 29.64 crore compared to Rs 22.8 crore in the corresponding quarter of the previous fiscal.

Revenue from operations jumped to Rs 144.3 crore from Rs 132.2 crore. Total expenses stood at Rs 104.6 crore as against Rs 102.7 crore.

Meanwhile, the company’s board has approved the appointment of Vivek Khanna as Group CEO subject to regulatory approvals.

The board has also approved Rs 33 crore investment by way of equity shares in wholly-owned subsidiary Mail Today Newspapers. Of the said investment, Rs 30 crore would be used by Mail Today Newspapers towards repayment of debt, post which it will become debt free.

Source:
___________________________________________
Airtel Digital HD Recorder / Kerala Vision Digital TV
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