Are TV9’s investors looking for an exit?

Financial investors in TV9, which has news channels in different languages, are reportedly looking for an exit this year.

At least four media groups have completed due-diligence by roping in multi-national consultants to make a bid for the stake.

A source close to the promoters has said that the deal could be closed in a month or two, depending on the size of the offer.

“They (the media groups) have completed their due-diligence. They are yet to come back with a number. The deal is likely to happen in a month or two in all likelihood,” the source said.

While the financial investors have 80 per cent stake in the Associated Broadcasting Company that owns TV9, Raviprakash, the Founder and Chief Executive Officer, and his team holds the remaining 20 per cent.

When contacted for his comment, the TV9 Founder and Chief Executive Officer (CEO), however, discounted the claims.

“There is no such plan in the near term. A couple of serious investors approached us but that didn’t happen. There is no immediate plan (for selling the stake by promoters) in the company,” he said.

The channel, which runs channels in Telugu, Kannada, Marathi, and Gujarati, is planning to expand its reach to other languages.

“It is completely speculation. There are no ongoing negotiations with any entity to sell stake. Actually, we are on a plan to expand our presence further. We are planning to launch a Tamil news channel,” he said.

iLabs, which was rechristened as Peepul Capital, is one of the major stake holders in the TV channel company started in 2004. Led by serial investor Srini Raju, iLabs saw an unfolding new market in the news segment.

The channel went through a rough phase after the formation of Telangana as MSOs enforced a blackout hitting its revenues and image for a few months.

Though the financial investors made unsuccessful attempts to exit the investments in the firm, the source said this time around they will go ahead with the plan.

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