Early this year, Two of India’s leading media houses, New Delhi Television Ltd (NDTV) and Bennett, Coleman and Co. Ltd (BCCL) picked up minority stake in Emaar MGF Land Ltd in a pre-IPO placement for Rs25 crore each
What is Pre-IPO Capital? Well it's exactly that, capital that is raised prior to an IPO. pre-IPOs are usually offered at a considerable discount to the anticipated IPO price. For example, if company X believed that they will list for $1, they may offer shares in a pre-IPO capital raising at $0.25. Should they end up listing for $1, then you make 4 times on your money at the IPO. Pre IPO is considered highly risky investment
This makes one wonder what is media houses doing in such risky ventures which are not even their core business. Media houses investing in real estate companies!!! What about the conflict of interest? Whats the guarantee that such ventures will not impair impartial reporting on affairs pertaining to that group?
Press council of India had raised this concern their report on paid news
In addition, owners of media organizations have financial relationships, including share-holdings, with advertisers, resulting in only favourable information about such advertisers getting disseminated and unfavourable information against them getting blacked out.
Emaar MGF is responsible for construction of Common Wealth Game Village 2010
This is a very good find. Makes sense that NDTV didn't report the Emmar MGF being hammered by Delhi CM later. You should send this to http://thehoot.org
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