TV18 Takes 50 Percent Stake in MTV Networks India

NEW DELHI, August 6: India’s Foreign Investment Promotion
Board (FIPB) has cleared Television Eighteen Group’s (TV18) acquisition of a
50-percent stake in MTV Networks India for Rs. 200 crore ($50 million), local
press reports indicate.

The move comes after Viacom’s
announcement in May that it was forming a 50/50 joint venture with the Indian
media company, called Viacom-18, to launch a new Hindi-language general
entertainment cable and satellite channel in the lucrative market within the
next year. TV18’s other international partnerships include CNBC-TV18 and CNBC
Awaaz with NBC Universal and CNN-IBN with Turner Broadcasting. Its network also
includes IBN 7, a Hindi-language general news channel in partnership with the
Jagran Group, owners of India’s largest Hindi-language daily.

TV 18 is making its investment in MTV Networks India through
a wholly owned Mauritius entity, BKH Holdings. According to published reports,
the deal calls for TV 18 to pay Viacom a fee of 2 percent of MTV Networks
India’s revenues for the use of Viacom brands, and 1 percent for technical
assistance and consultancy services.