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There are the done deals. In January this year, Mukesh Ambani’s Reliance Industries funded the merger of Eenadu TV with Network18. In May, the AV Birla Group picked up a 27.5 per cent stake in the India Today group. In July, the Sahara Group funded the founders of Digicable to buy back Ashmore’s stake. The Agarwal family that owns DB Corp just transferred its 50 per cent stake in Diligent, the company that publishes DNA, to Subhash Chandra’s Essel Group. The consideration is unknown. (See chart). The Rs 1,400-crore Jagran Prakshan, publishers of Dainik Jagran, bought Nai Dunia earlier this year.
Then there is a buzz. That Jagran is eyeing newspapers in Andhra Pradesh and Orissa. The company denies it. That Deccan Chronicle’s debt-ridden status has every newspaper group bidding for it. Most refused to comment or rubbished the reports. There is another one — Outlook is on the block. Maheshwar Peri, publisher Outlook, denies it ‘vehemently.’ Similar stories about Videocon’s DTH (direct-to-home) service, d2h “are not true,” says Anil Khera, CEO.
“There is a lot of talk of consolidation these days,” quips A S Raghunath, an independent media consultant. Not surprisingly. The dollar has strengthened, raising prices of newsprint. So, costs have risen by 20-30 per cent even while ad revenue growth slows down from 10 per cent last year to an estimated seven per cent this year. “Operating margins in the print business are down from an average of 20 odd per cent to 17 per cent or so,” says Sunil Mutreja, executive director of the Rs 565-crore Amar Ujala. “As the ad slowdown hits smaller newspapers they will look for shelter,” says Sanjay Gupta, editor and CEO, Jagran Prakshan.
Read Complete Article : http://www.business-standard.com/india/news/good-times-bad-times/486758/
Then there is a buzz. That Jagran is eyeing newspapers in Andhra Pradesh and Orissa. The company denies it. That Deccan Chronicle’s debt-ridden status has every newspaper group bidding for it. Most refused to comment or rubbished the reports. There is another one — Outlook is on the block. Maheshwar Peri, publisher Outlook, denies it ‘vehemently.’ Similar stories about Videocon’s DTH (direct-to-home) service, d2h “are not true,” says Anil Khera, CEO.
“There is a lot of talk of consolidation these days,” quips A S Raghunath, an independent media consultant. Not surprisingly. The dollar has strengthened, raising prices of newsprint. So, costs have risen by 20-30 per cent even while ad revenue growth slows down from 10 per cent last year to an estimated seven per cent this year. “Operating margins in the print business are down from an average of 20 odd per cent to 17 per cent or so,” says Sunil Mutreja, executive director of the Rs 565-crore Amar Ujala. “As the ad slowdown hits smaller newspapers they will look for shelter,” says Sanjay Gupta, editor and CEO, Jagran Prakshan.
Read Complete Article : http://www.business-standard.com/india/news/good-times-bad-times/486758/