By acquiring a 26 per cent equity stake in NDTV Network, a 100 per cent subsidiary of TV major NDTV, NBC Universal signed into a strategic long-term relationship today. The stake is worth $150 million .

With this, the total value of NDTV Network works out to Rs 2,400 crore. The Memorandum of Agreement (MOA) permits NBCU to increase its stake in NDTV Network upto 50 per cent over two years.

As per the agreement, day-to-day businesses will to be run and managed independently by company CEOs and their teams, while NBCU will be involved in all strategic decisions and future direction of these businesses. NDTV and NBCU will look at all opportunities of working together, distribution of NBCU channels, co-production of TV content and media process outsourcing.

Both parties expect the deal to benefit them mutually. While NBCU is looking to expand its business outside the US, NDTV expects to benefit from NBCU expertise in the entertainment world.

“India is a key, strategic and one of the most important markets, which is expected to grow further,” said Jeff Zucker, president and CEO, NBCU. “This alliance is also a sign of our parent company GE’s commitment to India.” Media forms one of the four strategic businesses (other three being infrastructure, healthcare and financial services that GE is focussed on in India.

NDTV chairman Pranoy Roy expressed confidence in the growth of the media sector in the country: “Media is alive and kicking in India and is one of the sectors where India is ahead of others.”