CNN-IBN, has acquired 50% stake in Channel 7, a Hindi news channel promoted by Jagran TV Private Ltd, for about Rs 600mn in an all-cash deal.

This marks the start of consolidation in the crowded Indian news broadcasting market, which at present has about 30 players fighting for an advertisement pie of about Rs 6bn.

According to company sources, with this acquisition, CNN-IBN, which has a market share of about 30% in the English news space, will make inroads into the Hindi news market. Channel 7 has about 7% market share in the Hindi news broadcasting space.

According to market observers, this move by CNN-IBN will give it a bouquet of television channels for cross promotion and target audience.

“Channel 7, while complementing the ‘CNN-IBN’ bouquet, will benefit from the combined strengths of two media groups,” said Ravi Sardana of ICICI Securities.

However, Prannoy Roy, chairman and managing director, NDTV, the biggest competitor for CNN-IBN and Channel 7 combine, refused to comment on the deal and how it would affect the company.

This strategic investment is expected to be completed over the next 60 days, subject to regulatory approvals. According to sources, at a later stage the two channels might also look at synergy in branding of two channels.

( www.indiainfoline.com)