Hyderabad-based MAA Television Network Limited (MTN) and Sony Pictures Television (SPT) have entered into a strategic alliance to give a new growth thrust to MAA TV and its network of Telugu television channels.
The strategic alliance would enable SPT or any of its affiliates to acquire 30% equity stake in MTN on signing the definitive agreement and subject to obtaining necessary approvals from the concerned statutory authorities. The majority shareholders of MTN and SPT have signed a letter of interest (LoI) to this effect.
A MAA TV spokesperson told Business Standard the financial details in this regard were expected to be finalised in a couple of months. The current management of MTN would continue post acquisition of 30% stake by SPT or its affiliates.Hence, the alliance essentially meant that SPT would remain as a strategic investor and content provider to MTN.
Entrepreneur and former chief of Matrix Laboratories N Prasad, actor-turned-politician K Chiranjeevi, his brother-in-law, Allu Arvind and actor Nagarjuna Akkineni, the four main promoters of MTN, together control about 95% of the company’s equity capital at present.
"An alliance between SPT and MAA TV will provide strategic opportunities for both companies, as well as great viewing for television audiences in India. We look forward to a prosperous relationship for all", Manjit Singh, chief executive officer of MSM India, SPT's Indian operations, stated in a press release on Monday.
“This indicates SPT’s faith in MAA TV as a leading Telugu general entertainment channel (GEC) network and the growth potential of the regional TV firmament. With Sony as a strategic partner, Telugu TV viewers can expect more and more quality programmes and family viewing from MAA TV network of channels. It will be a win-win formula with many complementary benefits. Besides, such transaction should infuse confidence and augur well for the industry across all sectors”, chairman of MTN, Prasad, said.
Commenting on the proposed strategic alliance, Chiranjeevi, Akkineni and Arvind emphasised that with the new initiative, MTN was all set to enter into a new growth orbit in Telugu TV space. Telugu TV viewers can expect successful international entertainment formats.