Reports and denials: Who knows what's happening between NDTV and SpiceJet's Ajay Singh

The news of Ajay Singh, the chairman of low-cost carrier SpiceJet, taking over NDTV has been floating around on the social media for the past one week. A news report carried by a leading daily suggests that the deal has already been finalised, and under the deal terms, Singh will own 40 per cent in the private broadcaster whereas its existing promoters - Prannoy Roy, Radhika Roy and RRPR Holding Pvt Ltd - will hold 20 per cent equity (down from the current 61.45 per cent stake).
 
Both the sides have refuted the reports of any such deal. In a corporate announcement, NDTV told Bombay Stock Exchange (BSE) that "we wish to inform you that the promoters of the company have not entered into any agreement for sale of their stake in the company to any person. The company is mindful of its obligations under Clause 30 of the Listing Regulations and shall promptly intimate you of any event required which is required to be disclosed under the said regulations."

The simplest explanation for Singh taking over NDTV is that he could turn into a white knight and revive the fortunes of NDTV. Singh, who is close to the BJP government, can do an encore of his turnaround strategy, and will be able to handle controversial matters through his solid networks. But that's a deductive reasoning, and there could be more to it than meets the eye.
 
Founded in 1988, NDTV Group has hands in different pies: news - NDTV 24x7 (English), NDTV India (Hindi), NDTV Profit-NDTV Prime, lifestyle - NDTV Good Times, and e-commerce - Indianroots, Gadgets 360, Bandbaajaa.com, Smartcooky, and Mojarto.com.
 
The news report cheered NDTV's investors. Even in a bearish market yesterday, NDTV's stock price jumped 2.5 per cent to close the day at Rs 53.10 on BSE. SpiceJet's stock, on the other hand, slumped 1.51 per cent.
 
The news report adds that in addition to holding the largest stake in the news network, Singh will also have editorial rights in NDTV. That's where the whole thing becomes tricky. The editorial stand of NDTV on various issues tends to be differentiated, and there have been occasions when the channel's views have gone against the current dispensation. The news space is expected to witness major shift in case the report turns out to be true. Until the speculation is put to rest, the report is going to keep the rumour mill running.