Private Equity takes substantial stakes across Indian Media

Asset management giant DE Shaw, known as much for its hedge funds as for its play on distressed assets, has struck a deal to acquire 14.16 per cent stake in NDTV Ltd that runs news channels like NDTV India and NDTV 24X7 through secondary market transactions. This is expected to be routed through shares held by two other foreign institutional investors – Merrill Lynch and Nomura.

This comes after the earlier investment in which DE Shaw had locked horns with 'Amar Ujala' over an exit option for its investment.

Singapore PE entity Temasek has a significant stake in 'Lokmat' and Warburg Pincus (till it exited completely) has a similar stake in the 'Dainik Bhaskar' group.

The PE giant Blackstone had invested Rs 225 crore in 'Jagran Holdings' which has several publications such as Dainik Jagran, I-next and City Plus under its fold.

In terms of foreign media operators Viacom runs the entire show with TV 18 bouquet of media vehicles including CNN IBN, IBN 7 and CNBC

The flood of foreign capital and foreign interest into opinion building assets is something to note….