The board of Mid-Day Multimedia today has evaluated and approved a memorandum of understanding signed by the company to undertake a strategic alliance with Zee News.
A spokesperson for Mid-Day Multimedia said, "As per the pact we will be putting up branded content on the Zee News platform."
However, he said that while the frequencies of the programmes and the financial arrangement are yet to be worked out, the content will go on air from January 2002.
Mid-Day Multimedia will be producing the news software for Zee News. When asked as to why the company has chose Zee News, the spokesperson said, "We worked out what we could bring to the table in terms of news. We could bring to the table city-centric news. Then we saw their number in terms of reach and felt that they were the best channel for us."
Apart from this strategic alliance, Mid-Day Multimedia has also acquired 50 per cent stake in a Chennai-based outdoor media company called SS International for Rs 1.25 crore.
SS International was an obvious choice for takeover by Mid-Day Multimedia as they are also into "street furniture" like bus shelters, etc. The official said, "We have acquired a 50 per cent stake in the company and will have majority control in the company through shareholders agreement."
Mid-Day also has a radio license in Chennai and according to the Mid-Day spokesperson this is the first step towards entering this market and setting up a base there.
Mid-Day Multimedia has posted a net profit of Rs 58 lakh for the quarter ended September 30, 2001 as against a net profit of Rs 1.53 crore for the corresponding quarter last fiscal. Total Income stood at Rs 22.86 crore for the quarter ended September 30, 2001 as compared to Rs 23.03 crore for second quarter ended 2000.
