International news agency Reuters will pick up 26 per cent stake in The Times Global Broadcasting, which is to launch the Times of India Group's news television channel this year.
Reuters would supply branded programming to the channel in a deal designed to support its strategy of growing its consumer media business, a joint statement by the two news organisations said.
"This investment marks an exciting new chapter for our media business in India and is a key step in growing our global direct to consumer business," Chris Ahearn, President of Reuters Media, said.
Vineet Jain, Managing Director of The Times of India Group, said "We have built our heritage and standing with generations of Indians the world over through our flagship newspaper. This TV channel is the natural next step in offering our news to a rapidly growing and discerning urban audience. This is a great coming together of two of the world's strongest news brands."
The Times of India has appointed JM Morgan Stanley, while Reuters have engaged Lazard India as financial advisors to further work on the agreement, which is subject to regulatory approvals.
The proposed 24-hour channel would operate from dual centres in Mumbai and Delhi, supported by bureaux around the country, the statement added.
Eyeing a huge cable market in India, estimated at 44 million subscribers, the new channel will get its revenues from subscriptions and advertising sales.
