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STAR India, the company that run entertainment channels like Star TV and Life OK in India, has got government approval for investing Rs 2,500 crore for further issuance and transfer of shares to its foreign collaborator and acquisition of the broadcasting business of another Indian company engaged in broadcasting sector on a slump sale basis. The approval was given along with 15 others, after the Foreign Investment Promotion Board (FIPB) discussed the proposal at a meeting held on May 28.
In February this year, the network inked a deal with Telugu entertainment channel network Maa Television Network to acquire its entire broadcast business for a reported Rs 2,500 crore. This includes four channels under the network—Maa Gold, Maa Music, Maa Cinema and Maa general ente rtainment. The MAA TV acquisition gives STAR access to the Rs 2,000-crore Telugu television market, India’s second-largest regional TV market in terms of revenue.
The approval means that Star India can now strengthen its presence in the south Indian market. Before this acquisition, the network has presence in Tamil, Malayalam and Kannada markets, but had failed to make an impact in the Telugu market. Star India now has a bouquet offering of 11 channels on south India.
The FIPB also cleared Today Magazines Lifestyle Private Limited’s proposal for foreign investment of 49 per cent by Cooperatief International Publications Holding through transfer and further issue for an aggregate consideration of Rs 2.05 crores.
