Media baron and Member of Parliament, Rajeev Chandrasekhar-promoted Asianet News Media & Entertainment, has diluted its shareholding in The Republic Media Network by selling a chunk of its shares to the latter’s Managing Director and Editor-in-Chief, for an undisclosed amount.
Without giving any details, Asianet confirmed the development, stating that it is now a minority investor, compared to its previous position as a significant shareholder in the news channel.
With the buyback of shares by Goswami, for which an agreement has been signed with Asianet News Media, the Republic Media Network will be a completely editor-controlled company. The investors have made healthy returns on their investment.
Republic TV is completing two years of broadcasting in the first week of May and with the share transfer, the company has been renamed Republic Media Network. Republic TV valuation following the transaction is about Rs 1,200 crore, said AsiaNet News.
After quiting Times Now as editor-in-chief in October 2016, Goswami had announced his new media venture, named Republic, which was launched in May 2017.
He floated ARG Outlier Media Pvt Ltd, which in turn floated ARG Outlier Asianet News Ltd along with AsiaNet News Media & Entertainment. It was ARG Outlier Asianet News Ltd which owned Republic TV. Republic Bharat, the Hindi news genre, is among the top-three news channels in that language.
Chandrasekhar, the promoter of Asianet said: “I am pleased with the growth and success of Republic and Arnab. I am happy to have invested in the vision of building a strong media-tech platform and Brand. Republic becomes another successful brand amongst many that I have helped build. This has also been a successful investment in financial terms.”
Post Goswami’s buying back of shares, Asianet News Media will continue to support Republic, albeit as a minority portfolio investor, Chadrasekhar said, without disclosing any details about the transaction.
Sanjay Prabhu, Director, Asianet News Media said, “Asianet News Network has consistently invested and developed leading brands in news and entertainment and our journey with Republic has been fabulous.”―Business Standard