for a further 26% of the $300 million company, but that is unlikely to get far given the formula-based offer price equates to a 20% discount to NDTV’s current market value.
The Roys consider Adani’s approach to be hostile, claiming he did not bother to inform them. Even so, a 5% jump in NDTV shares suggests other investors are pleased. The deal would round out Adani’s nascent media portfolio which currently holds a stake in business broadcast hopeful Quintillion Business Media which has struggled to win a television licence.
There are potential financial returns as well. Media and entertainment contribute less than 1% of annual EBITDA at Reliance’s oil to telecom conglomerate, but its Network18 media subsidiary reported an uplift in revenue, net profit and viewership in the year to March 2022. Network18 has delivered a 23% annualised shareholder return in the five years to end 2021, surpassing the 18% of India’s benchmark Nifty 50 index, Refinitiv data shows. NDTV is lagging now but has outperformed in the past. That’s reassuring even if the bottom line is not the primary goal.
ugalani Billionaire DAVID THOMSON Reuters
ugalani VERY GOOD