Time Warner makes Indian investment

Time Warner has paid US$126.5m for a 92% stake in Indian entertainment network NDTV Imagine, as part of its global expansion strategy.

The US broadcast giant has been focusing on international investment, especially in developing markets such as India. The deal for Imagine, which is controlled by Indian media giant NDTV Networks, includes a US$50m cash injection.

Time Warner subsidiary Turner Asia Pacific Ventures made the acquisition, and the deal will see NDTV and other investors holding on to the remaining 8%. Sameer Nair will remain as Imagine’s CEO, working with a team of Turner execs.

Turner Broadcasting System Asia Pacific president Steve Marcopoto said: “India continues to be a key priority for us. Our accelerated pace of investment here underscores both our commitment to this dynamic market and our view of India’s compelling long-term potential. NDTV has created a first-class network that has been successful in catering to the needs of the entire spectrum of television audiences and we’re happy to leverage our expertise to help take the channel forward.”

US media companies have been involved in a spate of activity in India this year and recent media reports suggest NBC Universal, newly acquired by cable operator Comcast, had looked to up its 26% of NDTV Lifestyle to a majority stake. However, talks were said to have fallen through and it later sold its shares back to NDTV Networks.

And last month, rival US media company Scripps paid US$55m for a 69% stake in NDTV Lifestyle, which runs English-language channel NDTV Good Times. The deal is expected to be finalised by the end of the first quarter of 2010.

NDTV said the Time Warner acquisition marked the end of a restructuring of NDTV Networks and that the company is now in a position to have a cash surplus and be free of debt.

Earlier this month, Time Warner completed its separation from AOL, ending what was widely regarded as one of the most disastrous partnerships in media history.