The Hindu Business Line : GBN to pick up stake in Channel 7

GLOBAL Broadcast News Ltd (GBN), a TV18 Group company and owner of CNN-IBN, will make a strategic investment in the Jagran Group promoted Channel 7, a 24-hour Hindi language general news channel.

After the investment is completed, GBN and Jagran TV Private Ltd will have an equal "inter se" ownership interest in the channel.

According to Mr Sameer Manchanda, Joint Managing Director, GBN, "The joint venture gives us immediate access to a Hindi news channel. We always wanted to be in that space. A decision on the branding of the channel will be taken shortly." While Mr Mahendra Gupta, Chairman of JTL, shall continue to lead the board of the joint venture, the editorial, production, distribution and other operations of Channel 7 shall be integrated with all the news channels of the TV18 Group, he added.

Though the exact equity structure of the deal could not be ascertained, sources said that GBN would acquire half of the 74 per cent stake held by the promoters in JTL. The remaining 26 per cent stake is held by a foreign entity.

The investment will be completed over the next 60 days, subject to a satisfactory due diligence followed by the receipt of necessary board, shareholder and regulatory approvals.

In a statement, Mr Mahendra Mohan Gupta, Chairman of JTL, said, "Channel 7 has built a strong position in the news industry within a short period. We look forward to partnering with CNN-IBN and the TV 18 Group which will provide a bigger platform to the channel."

Mr Raghav Bahl, Managing Director of TV18, added, "The experience and respect that the Dainik Jagran Group commands will be an invaluable asset for this partnership. With such a powerful 4-channel bouquet of market leaders — Channel 7, CNN-IBN, CNBC-TV18, Awaaz, the TV18 Group shall become the indisputable leader among India's news broadcasters."

The scrip of TV 18 on Friday closed at Rs 515.80 on the National Stock Exchange.