CNN-IBN buys 50% in Channel 7 for Rs 60 cr

Global Broadcast News, which owns English news channel CNN-IBN, has acquired 50 per cent stake in Channel 7, a Hindi news channel promoted by Jagran TV Private Ltd, for about Rs 60 crore in an all-cash deal.

This marks the start of consolidation in the crowded Indian news broadcasting market, which at present has about 30 players fighting for an advertisement pie of about Rs 600 crore.

According to company sources, with this acquisition, CNN-IBN, which has a market share of about 30 per cent in the English news space, will make inroads into the Hindi news market. Channel 7 has about 7 per cent market share in the Hindi news broadcasting space.

According to market observers, this move by CNN-IBN will give it a bouquet of television channels for cross promotion and target audience.

"Channel 7, while complementing the 'CNN-IBN' bouquet, will benefit from the combined strengths of two media groups," said Ravi Sardana of ICICI Securities.

However, Prannoy Roy, chairman and managing director, NDTV, the biggest competitor for CNN-IBN and Channel 7 combine, refused to comment on the deal and how it would affect the company.

"With such a powerful 4-channel bouquet of market leaders -- Channel 7, CNN-IBN, CNBC-TV18, Awaaz -- straddling the entire spectrum of general and business news in English and Hindi languages, the TV18 group will become the leader among India's news broadcasters," said Raghav Bahl, managing director of TV18 which owns the majority stake in GBN.

This strategic investment is expected to be completed over the next 60 days, subject to regulatory approvals. According to sources, at a later stage the two channels might also look at synergy in branding of two channels.