In the first instance of an Indian media company buying into a subsidiary of foreign media major, Television Eighteen Group (TV18) is picking up 50% stake in MTV Networks India for Rs 200 crore.
Earlier, TV18 had an alliance with Viacom, the owner of MTV, for general entertainment channels. MTV Indian currently markets MTV, VH1 and Nickelodeon in India.
With this stake sale, MTV would get the additional funds to expand its production, distribution and marketing activities in India and develop contents for various media platforms including the youth targeted movies it makes in collaboration with ADAG.
TV18 Group also gains as it immediately gets access to music and children channels to add to its current bouquet of news and business channels. And once the TV18-Viacom channels come on air, TV18 could boast of having a firm foothold over the Indian television space. Source