Japanese advertising agency Dentsu is in advanced talks to buy out digital advertising agency and consulting firm Webchutney, according to a report by The Economic Times. The report cites two officials with knowledge of the development and pegs the size of the deal between Rs 40 crore and Rs 60 crore, following which Network18 which owns a 70.06% stake in the company through its investment arm, Capital18, will exit. It also mentions that the promoters of Webchutney will continue to hold their stakes. However, Sidharth Rao, CEO of the company, has responded to the report with a blog post saying that 'it was an honor to be considered by the biggest agency networks in the world, and that it was too early for the company to take a decision & settle down.' Capital18 has neither denied nor confirmed if it was exiting Webchutney. The report also quotes Rohit Ohri, Dentsu India group's executive chairman, who acknowledged that the company was looking to scale up its digital capabilities in India and was currently discussing various options. Webchutney, had registered a profit of Rs 6.35 crore in the financial year 2011-2012, generating a revenue of Rs 21.55 crore. Note that Network18 holds 230,410 shares of Webchutney Studios, with a 70.06% stake in the company, through its investment arms – it owns 49.42% of the shareholding through Capital18 Limited, Mauritius and 20.64% through Capital18 Fincap Private Limited, with 230,410 equity shares. Webchutney’s clients include Airtel, Microsoft, Unilever, Marico, Titan, MasterCard, Barclays, Proctor & Gamble among others. If the…
Please subscribe to MediaNama. Don't share prints and PDFs.
You May Also Like
News
Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...
Advert
135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...
News
By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...
News
Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...