The news of business tycoon Gautam Adani taking over the New Delhi Television Limited (NDTV) news channel came as a big shock to viewers and people called it a “hostile takeover”. This is because the news channel claimed that 29.18% of NDTV was acquired without “discussion, consent or notification”.
Asia’s richest man Adani launched a hostile takeover of media giant NDTV, first acquiring a 29.18% stake in the broadcaster through an indirect acquisition followed by an offer to buy a further 26% controlling stake. NDTV reported that the debt was converted into equity without any input from the founder of the company.
This will be the port-to-energy group’s most high-profile bet in the media sector where Mukesh Ambani already has a significant presence through Network18, which runs multiple channels including news channel CNN-News18 and business channel CNBC-TV18.
Last year, Adani Media Ventures Ltd (AMVL), the media arm under group flagship Adani Enterprises Ltd (AEL), acquired the digital business news platform Quintillion Business Media Pvt Ltd (QBM).
What is Adani Group’s view on this deal?
Sanjay Puglia, the CEO, of AMC Media Network Limited, said the acquisition marks a significant milestone in the company’s journey to pave the way for new-age media across all AMNL platforms. He said that we want to empower citizens, consumers, and those who are interested in India through data and information.
What is the statement of the NDTV group about this agreement?
A news item was posted on NDTV’s news website after the news of the share purchase came to light. According to the news, there was no discussion between Adani Group and NDTV and its founder-promoter for the deal. According to NDTV reports, VCPL issued the notice based on the 2009-10 loan agreement. All this was done without the consent of NDTV and the founders of the company. Whereas, a day earlier, NDTV informed the stock exchange that no change has been made in their shareholding. RRPRH has been asked to transfer its 29.18 percent stake to VCPL in just two days.