SAB
TV TO SELL ASSETS TO SONY FOR $13 MN
Sony
Entertainment Television (SET) has acquired the SAB TV television
channel for Rs 57 crore. The deal also includes 1305 hours
of television content or 20% of Sri Adhikari Brothers' library.
According
to a press release issued by SAB TV, Sri Adhikari Brothers
Television Network has entered into an agreement with SET
Satellite, Singapore for the acquisition of what has emerged
as a popular comedy channel.
The
deal also includes a programming arrangement with SET India
for the supply of content worth Rs 75 crore for the channel.
The
listed company, Sri Adhikari Brothers Television Network,
will henceforth concentrate on television content production.
The
deal is not expected to have any impact on the equity pattern
and management of the company. The major tangible assets like
property and equipment will be retained by SAB, the statement
said.
SAB
promoter Markand Adhikari said the proceeds from the deal
will be used to create and upgrade the production and studio
infrastructure of the company and to set up new facilities
to create animation content.
The
company said it will also launch a news and current affairs
channel ‘Janmat' and the Marathi channel ‘Mi Marathi' by May
'05. These have been in the pipeline for some time and were
scheduled to be launched more than a year ago.
For
SAB Television Network, the deal is a good escape route from
what has been a losing proposition. While SAB's content business
has been a profitable venture, the broadcasting operations
are said to have been losing Rs 10 crore a year.
