New Delhi Television Limited (NDTV) has taken a significant step towards strengthening its presence in the lifestyle broadcasting sector with board approval for the acquisition of the GoodTimes channel. The transaction, agreed upon with Lifestyle & Media Broadcasting Limited (LMBL), is valued up to 180 million rupees (₹18 crore) on a cash-free, debt-free basis. This move is expected to diversify NDTV’s media offerings beyond its core news channel portfolio, enhancing its footprint in entertainment and lifestyle content.
Key Highlights of the Acquisition
-
Acquisition Structure: The deal will be executed through a slump sale on a going concern basis, transferring the business undertaking of the GoodTimes channel from LMBL to NDTV. The transaction involves no share purchase as the channel is not a separate legal entity.
-
Consideration and Terms: The cost of acquisition is capped at ₹18 crore, payable in a combination of cash and television advertising inventory. Adjustments will be made as per the binding Term Sheet. The deal's valuation is substantiated by an independent report to ensure an arm's length transaction despite LMBL being a joint venture partner.
-
Regulatory Approvals: The acquisition is subject to customary conditions including approvals from the Ministry of Information and Broadcasting, Government of India. NDTV anticipates the transaction closure within approximately three months.
-
Strategic Rationale: GoodTimes specializes in lifestyle-oriented programming focusing on entertainment, fashion, food, and travel. By acquiring this channel, NDTV aims to expand its operational capabilities and diversify beyond news broadcasting, aligning with its long-term growth strategy to capture a broader viewer base and increase stakeholder value.
-
Related Party Transaction: Since LMBL is a joint venture of NDTV, the deal qualifies as a related party transaction but has been structured at arm’s length with thorough due diligence and independent valuation to uphold governance standards.
Background and Context
NDTV, a prominent Indian media house operating multiple channels such as NDTV 24x7, NDTV India, and NDTV Profit, has faced significant market and ownership changes recently. This acquisition represents a strategic diversification attempting to balance its legacy in news with growth in lifestyle entertainment. The GoodTimes channel, known for its lifestyle content in English, Hindi, and Tamil, complements NDTV’s portfolio and offers an opportunity to leverage cross-channel advertising and viewer engagement.
Conclusion
NDTV’s approval to acquire the GoodTimes channel marks a pivotal expansion into the lifestyle broadcasting segment through a well-structured slump sale valued at up to ₹180 million. With regulatory approvals pending, the transaction is expected to complete in the next quarter, promising enhanced business diversification and value creation for NDTV stakeholders while reinforcing its competitive stance in a changing media landscape.
Source: Reuters, Storyboard18
