You Telecom, an internet service provider (ISP) in which global investment major Citigroup Venture Capital (CVC) holds 85% stake, has acquired 50% stake in Bangalore-based cable operator Digital Infotainment. The financial terms of the deal could not be ascertained. |
The acquisition will enable the Surat-based bandwidth service provider to start cable TV operations in the country starting from Bangalore. |
E V S Chakravarthy, chief executive officer, You Telecom, said the acquisition was made through the company's cable TV subsidiary Digital Outsourcing. You Telecom holds 51% stake in Digital Outsourcing. |
"We were looking at entering the cable TV and Heads-In-The-Sky (HITS) business, and this is the first step in that direction. We are also scouting for further acquisitions in the space," he added. |
This is the second acquisition by You Telecom, which had acquired Icenet, another ISP, last year. |
Bennett, Coleman & Co (BCCL) - the publishers of The Times of India - holds 5% stake in You Telecom. |
You Telecom has operations in over 12 cities and services over 1.7 lakh broadband subscribers. |