Dinesh jain
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Seven months after signing an agreement to gobble up Chef Sanjeev Kapoor’s culinary channel FoodFood, Discovery Communications has decided to walk out on the deal.
Discovery’s refusal to take a bite means that FoodFood will be left with Indian owners Kapoor and Sandeep Goyal. Though marginally profitable, funding the food speciality network’s expansion is going to be an issue.
Malaysia-based Astro has already exited the venture, a source said. The shares of Turmeric Vision, the company which owns and operates FoodFood, have been transferred to Kapoor and Goyal. While Kapoor owns 80% stake in Turmeric Vision, 20% rests with Goyal.
“Astro has sold its stake in Turmeric Vision. The shares have been transferred to Kapoor and Goyal,” the source added.
Earlier, Astro held 73% stake in Turmeric Vision while Kapoor and Goyal’s Mogae Consultants owned the remaining stake.
The deal with Discovery involved a two-way process. Initially, Kapoor and Goyal were to buy out Astro’s stake in Turmeric Vision. The shareholding would change to 80% in favour of Kapoor while Goyal would own the remaining portion. Discovery would subsequently buy out the shares of Goyal and acquire a major chunk of Kapoor’s holding. In the new structure, Discovery would own 74% stake and Kapoor the remaining 26%.
The acquisition of FoodFood would have meant Discovery having two channels in the lifestyle genre. The global conglomerate owns TLC, which competes with a breed of homegrown lifestyle channels including NDTV Good Times and Essel Group’s Living Foodz. The purchase of FoodFood would have given Discovery a local channel in the food genre.
Discovery calls off deal to buy Sanjeev Kapoor’s FoodFood channel | TelevisionPost.com
Discovery’s refusal to take a bite means that FoodFood will be left with Indian owners Kapoor and Sandeep Goyal. Though marginally profitable, funding the food speciality network’s expansion is going to be an issue.
Malaysia-based Astro has already exited the venture, a source said. The shares of Turmeric Vision, the company which owns and operates FoodFood, have been transferred to Kapoor and Goyal. While Kapoor owns 80% stake in Turmeric Vision, 20% rests with Goyal.
“Astro has sold its stake in Turmeric Vision. The shares have been transferred to Kapoor and Goyal,” the source added.
Earlier, Astro held 73% stake in Turmeric Vision while Kapoor and Goyal’s Mogae Consultants owned the remaining stake.
The deal with Discovery involved a two-way process. Initially, Kapoor and Goyal were to buy out Astro’s stake in Turmeric Vision. The shareholding would change to 80% in favour of Kapoor while Goyal would own the remaining portion. Discovery would subsequently buy out the shares of Goyal and acquire a major chunk of Kapoor’s holding. In the new structure, Discovery would own 74% stake and Kapoor the remaining 26%.
The acquisition of FoodFood would have meant Discovery having two channels in the lifestyle genre. The global conglomerate owns TLC, which competes with a breed of homegrown lifestyle channels including NDTV Good Times and Essel Group’s Living Foodz. The purchase of FoodFood would have given Discovery a local channel in the food genre.
Discovery calls off deal to buy Sanjeev Kapoor’s FoodFood channel | TelevisionPost.com
