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HT Media to demerge radio biz
HT Media to demerge radio biz
MUMBAI: HT Media Limited (HTML) is demerging its radio business, which operates under the brand name Fever FM, from its subsidiary HT Music and Entertainment company (HTME).
The radio business will be merged with HTML while the subsidiary company will continue to hold events.
The merger of the loss-making radio business with the profit-making HTML will help save taxes to the tune of Rs 340 million, a source in the company told Indiantelevision.com.
The radio business has an accumulated loss of close to Rs 1 billion, the source added. Fever FM operates in four cities - Mumbai, Delhi, Bangalore and Kolkata.
Another reason for merging the loss-making radio business into the profitable company is to synergise all the media vehicles. "HTML will synergise between the print and the radio operations. There is no need to pay the newspaper, for instance, for the ads that are put up for Fever 104 FM," the source elaborated.
HTML board, which met today, approved the demerger proposal. The demerger, however, is subject to necessary approvals and sanction of the concerned authorities and Delhi High Court.
HTML holds 75 per cent in HTME while the balance 25 per cent is being held by group company HT Ltd, the source said.
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ABDUL-AZIZ
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29-11-2008, 01:33 AM
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