TV Today Network has announced that its Special Committee of Directors has signed a Memorandum of Understanding (MOU) with Creative Channel Advertising and Marketing for the proposed sale of its FM radio broadcasting business.
Creative Channel is engaged in the business of television broadcast, advertising and programming activities.
Also read: TV Today Network To Shut Its Radio Business
In a regulatory filing, the company stated, “As authorised by the Board of Directors, the Special Committee of Directors has inter-alia, considered and approved proposals for entering into a MOU with Creative Channel Advertising and Marketing (“Creative Channel”) in relation to proposed sale of FM Radio Broadcasting Operations of the Company (comprising of three FM radio stations in Mumbai, Delhi and Kolkata under the frequency 104.8 FM) as a going concern , either directly or through any wholly owned subsidiary of the Company (i.e., Vibgyor Broadcasting or any other wholly owned subsidiary), subject to fulfilment of contractual obligations (which may be agreed between the parties) and receipt of all necessary regulatory approvals including permissions from the MIB and fulfilment of other compliances as may be required.”
The transaction is valued at Rs 20 crore plus applicable taxes that is- Rs 10 crore plus applicable taxes at the time of execution of MOU and remaining Rs 10 crore plus applicable taxes shall be paid on the closing date subject to all regulatory approvals. The sale is expected to be completed by January 31, 2026.
According to the company the turnover of the radio business in FY 2023-24 was Rs 16.18 crore. This was 1.70% of total turnover of TV Today Network for the said year. Considering that Radio Business is in losses, its net worth contribution is Nil.
