The tight liquidity market may have started pinching many media companies, but for some who are sitting on a pile of cash it is offering opportunities. Sun TV Network Ltd, a dominant regional broadcaster in the south, is exploring opportunities to enter the Hindi general entertainment channel space.
“The company is weighing options to get into the Hindi GEC space through the acquisition route if valuations are attractive. It has an excess of Rs 4 billion in cash,” a source close to the company says.
Sun TV officials could not be reached for comments.
Sun TV already has a national footprint in FM radio and has emerged as one of the leading players with 44 operational stations. It also holds 49 per cent in Red FM through subsidiary company South Asia FM.
The Hindi GEC space has seen a flurry of activity with new launches like NDTV Imagine, 9X and Colors.
Sun TV continues to grip the south Indian market despite increasing competition and expects to sustain a double digit effective advertising growth. The company’s pay revenues could jump from Rs 110 million in FY’08 to Rs 600 million in FY’09.