Asianet News: Difference between revisions

The Asianet channel company and Asianet cable company were promoted by Sashi Kumar with seed capital provided by Reji Menon. Kumar was a former head of [[Press Trust of India]]'s television division and his relative Menon was a Moscow-based businessman.<ref name=":1">{{cite web|url=http://www.sify.com/finance/rupert-murdoch-s-grand-takeover-in-kerala-news-news-jegwlxfefhj.html|title=Rupert Murdoch's grand takeover in Kerala|access-date=13 February 2014|archive-url=https://web.archive.org/web/20181106163859/http://www.sify.com/finance/rupert-murdoch-s-grand-takeover-in-kerala-news-news-jegwlxfefhj.html|archive-date=6 November 2018|url-status=dead}}</ref> Asianet Communications was the first entertainment television company in Malayalam.<ref name=":11">{{Cite news|url=https://in.reuters.com/article/idINIndia-36543120081117|title=Star buys majority in Asianet; forms JV with Rajeev Chandrasekhar|date=17 November 2008|work=Reuters|access-date=27 July 2019|language=en|archive-url=https://web.archive.org/web/20190727172226/https://in.reuters.com/article/idINIndia-36543120081117|archive-date=27 July 2019|url-status=bot: unknown}}</ref>

=== Exit of Sashi Kumar ===

When Asianet channel company and Asianet cable company faced a financial crunch, the real estate firm Rahejas was given 50% stake in the cable operations. The channels were still owned by Sashi Kumar (50% shares) and Reji Menon (50% shares).<ref name=":1" /> The Rahejas later wanted a stake in the channel operations too. While Kumar resisted overtures from the Rahejas, Menon negotiated a deal with them, and under the deal, the Rahejas got full control over the cable company. Menon used the consideration the Rahejas paid him to provide Kumar a "golden handshake".<ref name=":1" />

 

According to media reports, Sashi Kumar's exit from Asianet created a sense of loss in the [[Communist Party of India (Marxist)|Communist Party of India-Marxist]] leadership in Kerala. The party soon started promoting a company to set up an alternative Malayalam channel.<ref name=":1" />

 

Afterwards an attempt by [[Zee Group]] to acquire Asianet from Menon fell through. This was apparently because the severance agreement with the cable company prohibits the channel's takeover by a company with interest in cable operations.<ref name=":1" />

It was in February–April 2006 the first speculations about [[Rajeev Chandrasekhar]]'s interest in Asianet broke out. Chandrasekhar was a Bangalore-based businessman of Kerala origin. In late 2006<ref name=":11" /> Menon - after months long speculations - partially pulled out of Asianet turning over control to Chandrasekhar.<ref name=":1" /> At the time, Asianet was the leader amongst the Malayalam channels accounting for 35% of Kerala's total advertisement market.<ref name=":3" />

Chandrasekhar had acquired a 51% stake<ref name=":14" /> in the Asianet channels (Asianet, Asianet News, and Asianet Plus) through Jupiter Entertainment Ventures (JEV) in October 2006. While there was no official word from Asianet on the size of the investment, the figure is thought to range between INR 120-150 crore. The remaining 49% stake was still held by Menon and Asianet MD K. Madhavan with Zee Group holding a small 3% stake. Madhavan continued as the MD of Asianet, while Chandrasekhar took over as the Chairman of the company.<ref name=":3">{{Cite web|url=http://articles.economictimes.indiatimes.com/2006-10-30/news/27458627_1_reji-menon-asianet-news-asianet-md-k-madhavan|archive-url=https://archive.today/20140213063354/http://articles.economictimes.indiatimes.com/2006-10-30/news/27458627_1_reji-menon-asianet-news-asianet-md-k-madhavan|archive-date=13 February 2014|url-status=dead|title=Rajeev Chandrasekhar buys 51% in Asianet, deal size seen at Rs 150 cr - Economic Times|access-date=13 February 2014}}</ref> Asianet Communications soon launched its foray into Kannada and Telugu television industry with [[Star Suvarna|Asianet Suvarna]] and Asianet Sitara.<ref name=":1" /><ref name=":3" /><ref name=":11" />

STAR India eventually bought a 51% stake in Asianet Communications and formed joint venture with JEV in November 2008.<ref name=":4">{{cite web|url=http://www.business-standard.com/article/companies/interesting-tussle-on-to-gain-control-of-kannada-prabha-113071701107_1.html|title=Interesting tussle on to gain control of 'Kannada Prabha'|last=Kulkarni|first=Raghuvir Badrinath & Mahesh|date=17 July 2013|via=Business Standard|access-date=13 February 2014|archive-url=https://web.archive.org/web/20190727115558/https://www.business-standard.com/article/companies/interesting-tussle-on-to-gain-control-of-kannada-prabha-113071701107_1.html|archive-date=27 July 2019|url-status=bot: unknown}}</ref> The joint venture, called "STAR Jupiter", comprised all general entertainment channels of Asianet Communications ([[Asianet (TV channel)|Asianet]], [[Asianet Plus]], [[Star Suvarna|Asianet Suvarna]] and Asianet Sitara<ref>{{Cite news|url=https://www.business-standard.com/article/companies/star-tv-buys-majority-in-jupiter-entertainment-108111601036_1.html|title=Star TV buys majority in Jupiter Entertainment|last=Reporter|first=B. S.|date=16 November 2008|work=Business Standard India|access-date=27 July 2019}}</ref>)  and [[Star Vijay]]. Star India had reportedly paid $235 million in cash for the 51% stake and assumed net debt of approximately $20 million.<ref name=":7" /><ref name=":1" />  It’s not clear how much stake Menon held in the new STAR Jupiter venture. Prior to forming the JV, it was known that the original founder had held about 26% stake.<ref name=":11" /> In the wake of media reports about the STAR takeover, Asianet Vice-Chairman Madhavan issued a media release saying: "There is no basis for the speculation that the policies of the Asianet News Network (ANN) will fall under foreign [STAR]  control".<ref name=":1" />