Essel Group-owned Zee Media Corporation Ltd (ZMCL), which operates a clutch of news channels, is entering the home-shopping television business.
ZMCL has agreed to acquire up to 80% stake in India Today group’s loss-making e-commerce and TV shopping entities for Rs 165.78 crore (Rs 1.66 billion) in tranches spread over four years.
The move has surprised media analysts who said that TV shopping would have been a natural follow-on for Zee Entertainment Enterprises Ltd (ZEEL), the flagship entertainment broadcasting company controlled by Essel Group. However, Zee Media has said that TV shopping holds great investment value.
The acquisition would not only shorten the launch timing of the TV shopping channel but also scale up at a faster pace.
Having existing broadcast operations, ZMCL will be able to derive the synergy benefits from the proposed investment.
“We had channel licence lying with us and thought that it would be good to step into the TV shopping business.
Besides, there is synergy in terms of programming. We also get the e-commerce part through the acquisition,” a source familiar with the development said.
The board of ZMCL has given in-principle approval to the acquisition of up to 80% stake in both Today Merchandise Pvt Ltd (TMPL) and Today Retail Network Pvt Ltd (TRNL).
TMPL and TRNL are wholly owned subsidiaries of Living Media India, an India Today Group entity.
The companies, which are currently into losses, have been developing infrastructure for launching a TV shopping channel.
They also operate an e-commerce website, Online Shopping India | Online Deals | Discount Shopping India to complement the TV shopping business
Zee Media to enter TV shopping biz via acquisition of 2 India Today firms for Rs 165.78 cr | TelevisionPost.com
ZMCL has agreed to acquire up to 80% stake in India Today group’s loss-making e-commerce and TV shopping entities for Rs 165.78 crore (Rs 1.66 billion) in tranches spread over four years.
The move has surprised media analysts who said that TV shopping would have been a natural follow-on for Zee Entertainment Enterprises Ltd (ZEEL), the flagship entertainment broadcasting company controlled by Essel Group. However, Zee Media has said that TV shopping holds great investment value.
The acquisition would not only shorten the launch timing of the TV shopping channel but also scale up at a faster pace.
Having existing broadcast operations, ZMCL will be able to derive the synergy benefits from the proposed investment.
“We had channel licence lying with us and thought that it would be good to step into the TV shopping business.
Besides, there is synergy in terms of programming. We also get the e-commerce part through the acquisition,” a source familiar with the development said.
The board of ZMCL has given in-principle approval to the acquisition of up to 80% stake in both Today Merchandise Pvt Ltd (TMPL) and Today Retail Network Pvt Ltd (TRNL).
TMPL and TRNL are wholly owned subsidiaries of Living Media India, an India Today Group entity.
The companies, which are currently into losses, have been developing infrastructure for launching a TV shopping channel.
They also operate an e-commerce website, Online Shopping India | Online Deals | Discount Shopping India to complement the TV shopping business
Zee Media to enter TV shopping biz via acquisition of 2 India Today firms for Rs 165.78 cr | TelevisionPost.com
