Top News

Rediff.com to acquire TV advertising firm Vubites owned by founder Ajit Balakrishnan

Rediff.com India has received the approval of its board to acquire Vubites India, a television advertising company owned by the internet firm’s founder and chairman Ajit Balakrishnan for a total consideration of Rs 15 crore ($3.38 million).

Rediff.com India has received the approval of its board to acquire Vubites India, a television advertising company owned by the internet firm’s founder and chairman Ajit Balakrishnan for a total consideration of Rs 15 crore ($3.38 million). Rediff will pay Rs 13.68 crore ($3.08 million) to Vubites as a loan towards repayment of existing loan and Rs 1.31 crore ($0.30 million) to acquire equity shares of Vubites from its existing promoters.

The resolution to buy Vubites, which offers a platform for companies to put localized advertising on national TV channels via digital cable networks, was passed at the Rediff board meeting held on 26 October. Rediff.com will ask shareholders for their approval on 26 November. Rediff had $42.8 million of cash as on September 30, 2010.

According to Jayesh Sanghrajka, vice president, finance, Rediff, the financial due diligence on Vubites was conducted by one of the big four accounting firms, and Rediff has also obtained a valuation report from one of the big four accounting firms and a fairness opinion from an accounting firm Bansi S Mehta and Co. Mumbai. [Source: MediaNama, LiveMint]

Show More

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

Close