You Telecom buys B’lore-based Digital Infotainment
Rajesh S Kurup / Mumbai January 14, 2008
You Telecom, an internet service provider (ISP) in which global investment major Citigroup Venture Capital (CVC) holds 85% stake, has acquired 50% stake in Bangalore-based cable operator Digital Infotainment. The financial terms of the deal could not be ascertained.
The acquisition will enable the Surat-based bandwidth service provider to start cable TV operations in the country starting from Bangalore.
E V S Chakravarthy, chief executive officer, You Telecom, said the acquisition was made through the company’s cable TV subsidiary Digital Outsourcing. You Telecom holds 51% stake in Digital Outsourcing.
"We were looking at entering the cable TV and Heads-In-The-Sky (HITS) business, and this is the first step in that direction. We are also scouting for further acquisitions in the space," he added.
This is the second acquisition by You Telecom, which had acquired Icenet, another ISP, last year.
Bennett, Coleman & Co (BCCL) - the publishers of The Times of India - holds 5% stake in You Telecom.
You Telecom has operations in over 12 cities and services over 1.7 lakh broadband subscribers.
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