M&A

19 November, 2009

UPDATE 2-Scripps to buy stake in India's NDTV unit for $55 mln

* Scripps to own 69 pct in NDTV Lifestyle * NDTV Lifestyle management to retain present posts

* Scripps shares down more than 2 pct

(Adds analyst comments, background, updates share movement)

By Deepti Govind

BANGALORE, Nov 19 (Reuters) - U.S. media company Scripps Networks Interactive Inc (SNI.N) said it will acquire a majority stake in Indian broadcaster New Delhi Television Ltd's (NDTV.BO) lifestyle unit for $55 million as part of its plan to expand internationally.

Under the deal, Scripps will get a 69 percent stake in NDTV Lifestyle, while NDTV Group will own the rest of the joint venture.

"Their (Scripps) lifestyle program should travel reasonably well... to the extent that they can leverage their existing content or develop new content, it seems like a reasonable strategy," analyst Barry Lucas of Gabelli & Co said.

Chief Executive of NDTV Lifestyle, Smeeta Chakrabarti, and the rest of the unit's management team will retain their posts after the deal is completed.

NDTV's lifestyle unit is anchored by the NDTV Good Times channel, launched by the group in 2007.

The transaction, which will be completed by the end of the first quarter of 2010, is the second move by Scripps this month towards its goal of increasing global presence.

Earlier this month, Scripps said it would launch Food Network in Asia on Jan. 1, 2010. In October, it said it would launch Food Network through a joint venture with Chello Zone in Europe, Africa and the Middle East.

Scripps's media portfolio includes television and internet brands like HGTV, Food Network, Fine Living Network and country music network Great American Country.

In October, NDTV Networks Plc, the holding company for NDTV Group's entertainment and lifestyle businesses, said it would buy back a 26 percent stake from NBC Universal. [ID:nBOM196028]

Shares of Scripps were down 49 cents at $40.02 in afternoon trade Thursday on the New York Stock Exchange. They touched a low of $39.55 earlier in the day.

For the alerts, click here [ID:nWNAB8053] (Reporting by Deepti Govind in Bangalore; Editing by Anil D'Silva, Maju Samuel)

Source: http://www.reuters.com