Star to pick up stakes in popular portals - (Very Interesting)
(Star is likely to invest between $50 million and 100 million in various Internet properties. It is also looking at the option of forming a joint venture with an Internet service provider (ISP) which has a nationwide `A- category license'.)
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Star to pick up stakes in popular portals
(Friday, February 18, 2000)
Anjan Mitra in New Delhi
Star TV plans to take between 10 and 20 per cent equity in some popular portals, specially those relating to consumers, as part of an aggressive Internet foray.
The first deal is expected in about a fortnight. According to News TV India chief executive Peter Mukerjea, "We do have plans to invest in few Internet properties as we want to have synergies between broadcasting and Internet to increase our access to content and tap the traffic which comes on various sites on the Internet."
Star is likely to invest between $50 million and 100 million in various Internet properties. It is also looking at the option of forming a joint venture with an Internet service provider (ISP) which has a nationwide 'A- category license'.
Though Mukerjea was not forthcoming on the portals or sites which have been shortlisted, infotech industry sources said one of the sites being eyed by Star India is the popular contest2win.com.
News TV India Ltd is a subsidiary of the Rupert Murdoch-promoted and Hong Kong-headquartered Star TV, which itself is a subsidiary of the US-based News Corporation.
The investments in the form of equity in portals are expected to come through very soon, Mukerjea said.
Sources added that some of the investments may also come through eVentures India, a venture capital fund and joint venture between P K Mittal and News Corp/Softbank.
Last month, Star TV had formed a new company, StarTV. Com Ltd which will explore new new online business opportunities and lead the development and service offerings of Star TV?s various Internet and online e-commerce assets in Asia.
In India, Star is looking to take equity positions in portals through a combination of cash-and-airtime deals.
This means that Star will also offer airtime (for advertisments) on its channels, in addition to cash, for the equity stake it will acquire in a portal company.
The airtime deal , sources said, likely to be substantial in dollar terms considering Star channels? ad rates are on the higher side. As part of its Internet strategy, Star is also looking at expanding the cyber cafe concept in India by setting up huge studios. Part of the studio premises will house computers which can be used for browsing by visitors. The Net venture of Star India, in most liklihood, is going to be spun off as a separate company as Star India is also mulling going in for a domestic IPO. Mukerjea said that he was in New York recently to present India operation's point of view at News Corp headquarters as also the game plan to consolidate activities in South Asia.
-The Business Standard |
