Associated Broadcasting Company Private Ltd (ABC), which promotes bouquet of TV9 channels in different languages, has initiated steps to defuse its stand off with MSOs in Telangana, as the latter"™s ban on the telecast of Telugu Channel exceeds two months and is adversely impacting its valuation.
The company has reached out to the multiple system operators for talks to enter into an agreement even while offering its unconditional apologies. The MSOs had refused to telecast TV9 and ABN Andhrajyothi for their alleged anti-Telangana slant in their content since early June. The issue also had an echo in Parliament last week where several members opposed the restrictions on the channels.
This had put ABC in a fix as it was firming up plans to show an exit route to its original promoting group of Peepul Capital headed by serial entrepreneur Srini Raju, who holds about 65 per cent. The other promoter is Raviprakash, the Chief Executive Officer.
"We will exit from the media group in a month or two. They are in the process of finalising a plan that is expected to be completed soon," Srini Raju, for whom this was one of the earliest investments, told Business Line on Thursday evening.
"A new investor will buy our stake in the company," he added.
A TV9 executive, however, said that the impact of the ban on the channel in Telangana would be temporary. "We can soon regain the lost ground after this episode," he commented.
Origin of the problem
The troubled started within days of the TRS Government taking reigns in Telangana. In a programme, the channel allegedly portrayed the members of the Assembly in poor light, triggering widespread protests. Chief Minister K Chandrasekhara Rao made a statement in the House, condemning the programme.
The MSOs responded quickly and blacklisted TV9 and ABN Andhrajyothi, a channel promoted by the Telugu daily Andhra Jyothi. TV9, however, apologised to the House hours before the channel went off the air in Telangana.
Seeing no end to the row, the ABC management has taken pro-active steps by writing to the Telangana State Federation of MSOs for discussions and"coming to an agreement for mutual benefit".