Asianet News Network, a 24-hour television news network promoted by Jupiter Capital and owned by Rajya Sabha member Rajeev Chandrasekhar, is understood to be embarking on an Rs 150-crore expansion plan.
This expansion is being planned at a time when a host of media houses in the country is on a cost cutting spree as revenues from advertisement are dwindling.
Asianet News has round-the-clock news channels in Malayalam and Kannada and is set to start services in Telugu and Tamil shortly. The company is also understood to be scouting for a 24-hour English news channel for acquisition. The company sources said that they have been receiving many “distress calls” from owners of a few English news channels for infusion of funds. “We are not into just investments. If required, we will take over and run the channel,” a source in the company noted.
In addition to expanding its footprint in the television news network in South India and adding an English news channel, the company is also understood to be mulling over starting a current affairs English news magazine. This space is currently dominated by India Today and Outlook.
It is also learnt that the company is scouting for a regional language daily in South India. When contacted, a spokesperson of the company offered no comments, stating that they are always scouting for good opportunities.
According to sources, Jupiter Capital is sitting on a good amount of cash after successfully forging a joint venture with STAR Television for a bouquet of South-based general entertainment channels.
“STAR TV is understood to have valued the joint venture at Rs 1,400 crore, in which STAR holds nearly 80 per cent,” the source added.
If this proposed Rs 150-crore network expansion takes off, this will be Chandrasekhar’s third major franchise after BPL Telecom and Asianet’s general entertainment channels, which was scaled up and spun off in a joint venture with STAR Network.
Chandrasekhar after exiting BPL Mobile for an enterprise valuation of $1.3 billion to Essar Telecom, had taken over Asianet Network nearly three years ago, which was then focused on Malayalam language.
The company since then has launched Kannada and Telugu general and news entertainment channels and now has the Tamil channel by virtue of its joint venture with STAR TV.
“This joint venture is the only other network which has the potential to pose a strong competition to SUN Network’s dominance in South India over a three-year period,” industry sources note.
The television advertisement market in South India is estimated to Rs 3,000 crore with SUN Network having a 60 per cent share.
