NBC Universal and NDTV Ltd announced the execution of a Memorandum of Agreement (MOA) to form a long-term strategic partnership in India, whereby NBC Universal would acquire an effective 26% share in NDTV Networks, the holding company for NDTV Ltd’s entertainment and lifestyle channels, digital media and other interests, including media products and services.
Channels operated by NDTV Networks include NDTV Imagine, the Hindi general entertainment channel, launched this week, and the recently unveiled lifestyle channel NDTV Good Times.
The agreement also includes an option for NBC Universal to increase its stake to become a 50% partner with NDTV in the joint venture company through which NBCU is investing, subject to any necessary consents and approvals. The option would be exercisable at fair market value in two years’ time.
“The Indian TV market is expected to grow at 16% annually, which provides huge opportunities now and into the future,” said NBCU President and CEO Jeff Zucker.