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NDTV Calls Off Scripps Deal; FY10 Results

Will NDTV's 4 point plan for becoming cashflow positive need re-jigging? The BSE listed company has announced that it has decided to terminate its definitive agreements with Scripps Networks Interactive; Scripps' acquisition of a 69 percent stake in NDTV Lifestyle, which runs the fashion and aspirational channel NDTV Good Times for $55 million, was expected to be closed in the last quarter. Note that while NDTV had earlier put the amount at $55 million, notes to its financial results for Q409 indicate that it was $35 million. NDTV has said that it "decided to exercise its right to terminate the definitive agreements and is in the process of terminating them", while Scripps announced that the two companies were unable to come to terms on specifics of the transaction, and discussions ended on Monday. Following the announcement of the Scripps deal in November last year, in December, NDTV had sold off 92 percent stake in NDTV Imagine Ltd to Turner; the deal was completed on February 23rd 2010, and NDTV Imagine is now Turner General Entertainment Neworks India Ltd. A part of the money from Scripps was to be used to pay holders of bonds that the company bought back for $72.4 million, but it appears the $126.5 million from Turner may have been enough for that purpose: According to notes to NDTVs FY10 results, during the year, NDTV Networks Plc repurchased the "US$ 100 Million Step up Coupon Bonds due 2012 for US$ 72.4 Million financed through bank loans. As…

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Written By

Founder @ MediaNama. TED Fellow. Asia21 Fellow @ Asia Society. Co-founder SaveTheInternet.in and Internet Freedom Foundation. Advisory board @ CyberBRICS

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.

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