Suzlon Chairman and MD Tulsi Tanti and his family have picked up 49% in Digital Outsourcing, the cable TV subsidiary of broadband company You Telecom. According to Business Standard, the deal size is estimated to be around Rs. 100 crores. You Tele had entered the cable TV business in January this year, with the acqusiition of 50% stake in Bangalore based cable operator Digital Infotainment; a deal that was done through Digital Outsourcing. Interestingly, You Telecom is a case of an ISP entering the Cable TV business…there’s probably more money there, than in the ISP business.
At that time, You Tele held 51 percent stake in Digital Outsourcing. According to the BS report, You Tele now owns 36% in Digital Outsourcing. Citigroup Venture Capital owns 85% in You Telecom, while the Times Group (BCCL) owns 5%. Over the past year or so, I’ve read a few reports of You Telecoms plans – of a Rs. 300 crores expansion and a Rs. 400 crores expansion…Any idea when we can read about a Rs. 500 crores expansion for the company? Expansion aside, You Telecom, earlier this year, also entered into a 50:50 JV with Red Snapper, a Malaysian wireless and VoIP operator, which owns a Widea Area WiFi technology.