Last updated : January 18, 2007
has decided to get back to Radio City, this time by acquiring a 20 per cent stake in the FM channel. Currently, there are two investors in Music Broadcast Pvt. Limited (MBPL) - the company which owns Radio City in India - India Value Fund, which owns 75 per cent stake, and Radiovani (owned by Pramod Mittal) which has 25 per cent stake.
STAR India will buy out 20 per cent share from India Value Fund, which will reduce the latter's share to 55 per cent in MBPL. This arrangement does not, however, imply that STAR India will supply content or ad sales support to Radio City as was the arrangement in past.
But Yash Khanna, head of corporate affairs, STAR India, says, "Though this is purely an investment from our side, we will work closely with Radio City from now on in terms radio partnership and sponsorship."
In early 2005, STAR discontinued providing content to Radio City and later in the year withdrew ad sales support as well. This happened following a change in ownership of Radio City. The FM channel used to be owned by industrialist Pramod Mittal, who then sold 75 per cent of his stake to venture fund India Value Fund (earlier GW Capital).
This resulted in the dissolution of the company that was set up in a joint venture between Pramod Mittal and STAR India, through which STAR provided content to Radio City.
Khanna explains, "Now, with the Government allowing FDI in radio and looking at the lucrative and growing medium that radio is, we have decided to invest in Radio City."
© 2007 agencyfaqs!First Published : January 18, 2007