The two will now jointly invest close to $250 million (over Rs 1,000 crore) in Multi Screen Media over the next 2-3 years, according to sources close to Modi. A part of this money is expected to meet the expenses for the acquisition of the ten-year telecast rights for the Indian Premier League for $1.026 billion (over Rs 4,200 crore).
It is believed that differences had arisen between the two after Modi indicated that he would like to acquire Sony's stake in the company along with that of the minority shareholders. Sony was opposed to any proposal that could have reduced its current stake.
Modi, consequently, has come round the view that he will not be able to get full control of Multi Screen Media. Further proof that the two have decided to smoke the peace pipe together came when a source in the Modi camp said that Sony alone will decide the fate of the proposal to change the name of its flagship channel from Sony to Sony Spice.
Modi recently sold his 40.8 per cent stake in mobile telephone services provider Spice Communications to Kumar Mangalam Birla's Idea Cellular for Rs 2,500 crore. After the deal was sealed, he had said that he would use this money to buy a stake in Multi Screen Media.
Both Kunal Dasgupta, the chief executive officer of Multi Screen Media, and Modi declined to comment.
At the moment, Modi is is close to wrapping up his agreement with the company's minority stakeholders
