Sony TV to take 20% stake in CNBC India

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BOMBAY--Sony Entertainment Television is to acquire around 20% ofbusiness news channel CNBC India, a 51/49 joint venture between CNBC Asia of Singapore and TV18, respectively.

According to the TV channel's executives, a memorandum of understanding has been inked between the two parties and the deal will happen April 1. SET officials have yet to divulge the exact equity stake they will be taking in CNBC India, but market sources say it could be in the region of 25% to 30%.

TV18 has exclusive rights to produce India-based programs for CNBC India. Under trhe agreement, it will not be able to make business programs forcompeting channels, such as CNN, Star News or the BBC.

In turn, CNBC India will link with SET for its marketing, ad sales and cable distribution. It's believed CNBC and SET will share revenues equally under the deal and that Sony will also levy a small fee for ad sales and distribution.

Copyright March 2000, Crain Communications Inc.

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