After the mega buyouts by Indian corporates in industries like tea, steel and automobiles, the global expansion of India Inc has now spread to the media business. Bennett Coleman & Co Ltd, the country’s largest media group and the holding company of the Times of India group, on Saturday bought Virgin Radio in the UK in a £53.2 million (Rs 445cr approx) deal with SMG Plc. ( Watch )
While the financial size of the deal is not in the same league as the Corus acquisition, its significance lies in the fact that it is the first major global takeover by any Indian media group. Virgin Radio is one of UK’s biggest broadcasters with an estimated 2.7m regular listeners. It has an FM licence for London as well as a national AM licence.
The deal will give BCCL’s wholly owned subsidiary, TIML Golden Square Ltd, control over Virgin Radio’s assets in the UK — valued at £68.5 million gross (Rs 570cr) and £63 million net (Rs 525cr) as of December 31, 2007. Its gross revenues in 2007 were £24m (Rs 200cr) and its profit before tax £4.3m (Rs 36cr). Under the deal, TIML can use the Virgin Radio brand name for 90 days after the sale is completed, but will then rebrand the radio network.
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