NDTV, one of India’s biggest TV groups, has signed term sheets with unnamed investors under which they would explore the possibility of supporting NDTV’s entry into the ecommerce sector, the company said.
“The Company and NDTV Convergence Limited, a subsidiary of the Company, have signed preliminary, non-binding term sheets with certain potential investors for e-commerce ventures in the field of food, auto and gadgets,” it said.
NDTV Gadgets is India’s No.1 gadgets news portal and currently has direct or indirect agreements with players such as Flipkart under which it redirects some traffic to these websites using product links.
Having an in-house ecommerce venture would allow NDTV to fully tap the opportunity afforded by its content business.
NDTV had earlier said that its Board of Directors of the Company had accorded in principle approval for setting up of online ventures including digital transactions.
“The term sheets are non-binding and are subject to the parties agreeing upon and executing the definitive agreements which will include detailed terms and conditions in relation to the Proposed Transactions.
“Further, the Proposed Transactions will be subject to various conditions precedent to be specified in the definitive agreements including due diligence, receipt of requisite corporate authorisations/ approvals and regulatory approvals. However, as a matter of good corporate governance practice, this is being disclosed to you and the public shareholders,” it added.
NDTV’s online outlets, such as its main website and Gadgets, are among the most high-traffic properties in Indian Internet universe. They are yet to be spun off and listed separately. However, it is believed that the group has some plans in this regard, which would unlock value for existing NDTV investors as well.