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Journalism of Courage
MUMBAI/NEW DELHI, MARCH 28: Where Rupert Murdoch goes, 63-year-old Kerry Packer is sure to follow. Rivals on the Australian media scene until a $160 million deal made them partners in Foxtel three years ago, Packer and Australia-born Murdoch have found another thing to agree upon: The potential of India in the global entertainment market. The man who gave day and night cricket to the world unveiled the deal in Mumbai on Monday. His pitch: The country of the future is not China but India. His drive: A $250 million venture capital fund split threeways between himself, Dalal Street big bull Ketan Parekh, and Himachal Futuristic Communications Ltd (HFCL) Chairman Vinay Maloo.
And while Maloo celebrated sealing of the deal in Mumbai on Monday by uncorking champagne at the The Oberoi poolside where — everybody who’s somebody in the media, entertainment, stock and financial markets was there — Rajya Sabha member and Samajwadi Party General Secretary Amar Singh has decided to do the honours in Delhi, with a dinner at the Ashok Hotel’s convention hall, where Murdoch supped with Prime Minister Atal Behari Vajpayee. The reason: Apparently Singh has been Packer’s “close friend for 10-15 years and always stays with him when he’s Down Under”.
Invited will be a host of Singh’s close friends, which translated means some of the most important men and women in the Capital’s media and political circuit, including Mulayam Singh Yadav, Information and Broadcasting Minister Arun Jaitley, and Sahara Chairman Subrata Roy. Does it have anything to do with talk of Sahara TV entering into a joint venture with Packer’s Channel 9 for a 24-hour sports channel? Nobody will confirm or deny, except to laugh at the coincidence of Packer’s arrival on the day Sahara TV CEO, former Information and Broadcasting secretary Mahesh Prasad, kicks off the 24-hour entertainment channel in the presence of Subrata Roy on Tuesday morning.
All the polo-loving Packer, described as the richest man in Australia, said about it in Mumbai was that he was holding discussions with Sahara. “But nothing has been finalised so far,” he said. But it may be why Amar Singh also flew down for the Mumbai do. Packer’s son Jamie, who preceded his dad to India last month, picked up a 10 per cent stake in HFCL for $238 million for the family company, Consolidated Press Holdings, after tying up a production deal with DD for cricket coverage for two-and-a-half years.
This is the first public project that the media-shy Ketan Parekh has entered. “The fund will focus on identifying and incubating start-ups,” said Parekh. The big bull’s entry into venture financing with an investment of Rs 363 crore has surprised corporate and market pundits. Jamie will represent the senior Pakcer at the fund. The group has so far not participated in a venture fund in any other country, although it has made small investments in some companies. “We do not envisage any such investment either in any other country, in the near future,” Jamie Packer added. Maloo’s investment will be in his personal capacity and not as HFCL Chairman.
The fund will be registered with the Securities and Exchange Board of India as KVP Ventures after Ketan, Vinay and Packer, Parekh said. “Investments have been identified, only the announcements have to be made,” he said, adding that the first investment would be announced on Tuesday. The investments will be made in IT, software, internet, e-commerce telecommunication, media and entertainment, and biotech companies. The fund will also provide incubation facilities.
“The intellectual property of India is now recognised throughout the world,” Kerry Packer said. CPH controls Packer’s empire and has interest in media, entertainment and information technology. It has a net worth of around $5 billion. “In the IT industry, throughout the world there’s now something which as a nation you can be so proud of. We wanted to participate in that growth,” Packer added. And like Murdoch, who announced a $200 million fund for India with Ispat Group’s Pramod Mittal, he said he was interested in Indian opportunities in the area of convergence which included the press but did not want to be a major shareholder in any venture. “We don’t want to control anything. We would like to be involved and if we have some expertise that we can help with, we would be delighted to supply that,” he added.
