TV Today soars, Birla eyes majority stake in Living Media

Kumar Mangalam Birla-led A V Birla group may increase its stake to 51 percent in Living Media, which in turn owns 57.46% stake in TV Today Network, a Business Standard report said today.

Living Media acts as a holding company and owns 57.1 percent in TV Today Network, the listed company that owns the group’s broadcasting assets, besides publishing a host of magazines that include the flagship India Today.

Shares of TV Today Network were at Rs 76.80, up 4.85 percent in morning trade following the report as the funds will be used to help retire Living Media’s debt .

[caption id=“attachment_509065” align=“alignleft” width=“380”]  Living Media acts as a holding company and owns 57.1 percent in TV Today Network. Reuters[/caption]

The media house, which owns TV Today, Aaj Tak, Headlines Today and a number of magazines including India Today, has been posting losses this year due to reduced advertisement income.

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In August, the Competition Commission of India (CCI) approved Aditya Birla group’s purchase of 27.5 percent in Living Media, which valued the group at around Rs 1,400 crore. The two groups had announced this transaction earlier in May this year.

The companies had said in their applications to CCI that the said purchase of shares of Living Media by IGH may go up to a maximum of 49%, and the proposed acquisitions and valuation adjustments should be completed within six months from the end of the financial year 2015-16.

According the the Business Standard report, the two companies have denied the stake sale talks, but sources told the paper that the talks were at the final stage and the deal has already been signed.

(Disclosure: Firstpost is published by Network18, which runs TV channels that compete with Zee group channels.)