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Reliance Broadcast Network, CBS Corp to form 50:50 Joint Venture
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merisarkar news service
New Delhi, June 20, 2010 |
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RBN forms 50:50 JV with CBS
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Anil Dhirubhai Ambani Group's (ADAG) firm Reliance Broadcast Network Ltd will form an equal joint venture with US media conglomerate CBS Corp to own and operate TV channels in India.
RBN was previously known as Reliance Media World Ltd. The company will form a 50:50 joint venture with CBS Studios International, a wholly owned subsidiary of CBS Corp, "for the purpose of owing or operating a portfolio of television channels," the company informed the stock exchanges.
“As currently proposed, the joint venture would include certain programming rights across the countries of India, Nepal, Bhutan, Sri Lanka, Bangladesh, the Maldives and Pakistan for now," the company informed Bombay Stock Exchange and National Stock Exchange of India on June 19thh.
RBN and CBS will have equal 50 per cent equity interest in the joint venture.
The joint venture will initially broadcast English language general entertainment channels and will explore Hindi and regional language general entertainment channels in the next phase.
"RBN and CBS have today (10th June) signed a preliminary, non-binding term sheet, which is subject to, among other things, customary diligence, the negotiation and execution of definitive documentation, etc., which are presently underway and which the parties intend to endeavour in good faith to complete within a period of one month," RBN said.
RBN operates India's largest radio network (92.7 BIG FM) and is into outdoor, promotions and events.
CBS Corp's television network is America's No. 1 broadcast network. CBS has developed some of America's biggest hit shows like CSI, NSIC, America's Next Top Model and The Oprah Winfrey Show.
"The joint venture company would be a limited liability company incorporated in India," RBN said.
"As currently proposed, CBS and RBN, or subsidiaries of such companies, would act as shareholders and shall have an equal 50 per cent equity interest in the joint venture company," RBN added.
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