Media and entertainment firm NDTV Ltd today said it has parted ways with Raj Nayak, head of the advertising sales and marketing services arm NDTV Media, who will now float his own company.
Nayak, who along with some of his associates held 26 per cent in NDTV Media, will set up a separate media company called AIDEM Ventures Pvt Ltd.
NDTV and Nayak have entered into an agreement, under which the media house will buy back the shares of Nayak and his associates in NDTV Media.
"As agreed upon, our shares will be bought by NDTV and NDTV media will fallback into the main company," Nayak told PTI but declined to comment on the valuation of the shares citing confidentiality.
Post the rearrangement, AIDEM Ventures which owned 100 per cent by Nayak and associates, will continue to serve NDTV but the terms have been renegotiated.
"We used to work on a commission basis, which will continue with AIDEM but the fee structure has been changed," he said.
The new arrangement will save substantially on costs and having renegotiated the terms of engagement will have greater control of its sales operations, NDTV said in a statement.
At the same time NDTV will ensure continuity in its revenue stream while working closely with Nayak's new organisation, it added.
NDTV Media was formed seven years back with NDTV holding 74 per cent. It was set up with an aim to provide advertising sales and marketing services to television channels run by NDTV Ltd as well as other media companies.
Nayak said while the NDTV brand was a big boost, it also had a flip side with other channels having questions over the neutrality of the firm.
"With AIDEM, I hope that doubt will be cleared and I hope to grow the basket of clients bigger," he said.