Den Networks Limited (Den) has informed the bourses that it has entered into an agreement to sell its entire fifty per cent stake in its joint venture Star Den Media Services Private Limited (Star Den) to its partner Star India Private Limited (Star India).
The agreement price for Den’s stake is INR 403.5 million (US$ 6 million) and Star owns an equal share in the joint venture. After completion of the share transfer to Star, Den Network Limited will cease to be a shareholder in Star DEN. The joint venture agreement between the parties will then be terminated.
To recall, Star DEN was formed in 2008 as an equal joint venture between Star and DEN with the vision to create efficiencies in the distribution sector. The joint venture agreement was signed on 14 January 2008 and was restated on 26 May 2011. The company was distributing Star India channels via all fixed networks including cable, DTH, IPTV, HITS and MMDS. Apart from Star channels, it was also distributing NDTV channels.
Furthermore, in 2011, the company formed an alliance with another distribution joint venture, Zee Turner, to form MediaPro, a pay TV with most of the popular channels. MediaPro ceased operations in November 2014 in the after the Telecom Regulatory Authority of India’s (TRAI) regulation on content aggregators disallowed bundling of channels of more than one broadcaster. Following the split, Star and Zee set up their own distribution teams.
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