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A Hostile Media Bid Shows How Asia’s Richest Men Can Align and Dominate a Sector – BNN Bloomberg

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(Bloomberg) — Soon after Gautam Adani announced his hostile takeover bid for news broadcaster New Delhi Television Ltd., he was congratulated via tweet by a senior executive at the conglomerate helmed by Mukesh Ambani — Adani’s billionaire rival and his predecessor as Asia’s richest man.

The public toast from Parimal Nathwani, director of corporate affairs at Ambani-led Reliance Industries Ltd., hinted at an amicable co-existence, if not cooperation, between the established empire and the rising upstart at its heels. 

In fact, Adani could not have mounted his NDTV bid without at least the knowledge of a couple of close Reliance associates who were linked to a little-known entity, called Vishvapradhan Commercial Pvt Ltd., or VCPL. It was the world’s new second-richest man’s acquisition of VCPL that in turn helped him make a takeover bid for NDTV.

The NDTV acquisition, if successful, would make Adani and Ambani straight-up rivals in a sector for the first time, given Ambani’s control of large media assets including news channels. While observers have long anticipated the tycoons going head-to-head in industries across India’s $3.2 trillion economy, the first of these encounters appears to be more conciliatory than confrontational, with potentially worrying consequences for the thousands of small firms in the sectors they’re aiming to dominate. 

Never Consented

NDTV’s founders — Prannoy Roy and Radhika Roy — took a loan from VCPL in 2009 to repay another debt. This interest-free loan from VCPL could be converted into NDTV equity and, as the Indian markets regulator later found, was sourced from a firm that was a wholly-owned subsidiary of Reliance Industries. While VCPL since changed owners, it retained links to the Reliance group, according to public filings.

Adani Group acquired VCPL last month and with it, an indirect 29.2% share in NDTV. The Roys said they never consented to this stake purchase. The Adani Group is set to make an open offer in October to NDTV’s minority shareholders in order to buy a further 26%.

“It looks like the two corporate giants are hand in glove,” said Zoya Hasan, professor emerita at the Centre for Political Studies at Jawaharlal Nehru University in New Delhi, referring to the sale of VCPL to the Adani Group. Increased control of India’s nascent but fast-growing media sector by the two billionaires will have “significant consequences,” she said.

Representatives for Reliance Industries and the Adani Group did not respond to emailed queries on the NDTV deal and VCPL’s ownership chain. The Roys didn’t respond to multiple requests for comment. Nathwani didn’t respond to emails seeking comment on his tweet.

Same Ground

Asia’s two richest men are increasingly treading the same ground as Adani expands beyond ports and coal mining and into digital services, telecom, media and retail — sectors that Ambani has dominated for years. Both the tycoons also align very closely to Indian Prime Minister Narendra Modi’s policy initiatives and nation-building priorities. 

A report that the two tycoons have put in place a non-poaching pact in which they have agreed not to hire each other’s employees, in order to avoid a war for talent in their overlapping business interests, have added to concerns that the two conglomerates may one day carve up the Indian economy to the detriment of smaller players. 

Some contracts extended to potential employees were withdrawn after the pact was put in place, Business Insider reported. Representatives for both companies declined to comment on the report.

Buyouts by giants like Reliance and Adani can “hurt smaller media firms” who stand no chance against them, said Indira Hirway, director of the Centre for Development Alternatives in Ahmedabad, Gujarat. “This is applicable for any business including green energy, cement or retail,” she said.

The lever that Adani pulled in the NDTV deal is linked to the loan taken by the Roys 13 years back. 

A June 2018 order from the Securities and Exchange Board of India said that the Roys’ 3.5 billion rupee ($44 million) loan from VCPL was ultimately sourced from Reliance Strategic Investment Ltd., a subsidiary of Ambani’s flagship listed firm. The loan agreement entitled VCPL to share warrants that could be converted into NDTV equity even if the loan was repaid, according to the order. The regulator investigated the loan at the time because of allegations that VCPL had skirted share purchase and takeover rules.

Tangled Web 

In 2012, Reliance sold VCPL to entities with links to the Reliance group, according to people familiar with the matter who asked not to be named discussing the private arrangement. Two names come up in Indian media reports: Surendra Lunia and Mahendra Nahata. 

Lunia told The Economic Times in August that he owned VCPL “for the last 10 years” until he sold it to the Adani Group. Lunia was CEO of the Nahata-owned Himachal Futuristic Communications Ltd. until 2010, and is currently a director of Infotel Telecom Ltd. that operates out of Reliance headquarters in Mumbai, according to corporate filings.

Nahata was a director at Reliance Jio Infocomm Ltd. through at least March 2021 and has represented Ambani’s telecom unit at high profile industry events. Reliance had entered the telecom sector in 2010 by buying a firm, Infotel Broadband, that Nahata founded. 

Nahata and Lunia did not respond to emails and calls seeking comment on VCPL and its sale to the Adani Group.

Cross-directorships don’t necessarily imply that Adani had or needed Ambani’s nod to make his moves, according to people familiar with the situation.

“It’s not a very transparent deal,” said Anand Pradhan, a professor at Indian Institute of Mass Communication in New Delhi. 

Media Push

Set up in the 1980s, NDTV was a pioneer at a time when India’s main news channel was a stodgy state-owned broadcaster. It’s grown into a prominent media house that broadcasts news in English and Hindi and is one of the most popular news handles with more than 35 million social media followers. 

To allay some of the fears around its bid, Adani Enterprises Ltd. said in an exchange filing that it intends to grow NDTV’s business and “empower Indian citizens” by setting up a “credible next generation media platform.”

Seen as relatively critical of Modi’s government in a country where press freedom has been in decline, the house of NDTV’s founders has been raided by local tax authorities and the firm probed by investigative agencies for alleged money laundering in recent years. The Roys have denied wrongdoing in the past.

NDTV, with its nationwide reach, makes it a good asset for Adani as he looks to scale up. His first known foray into the sector was earlier this year after his Adani Media Ventures Ltd. announced its plan to buy a stake in Quintillion Business Media Pvt. Quintillion Media Pvt. Ltd. and Quintillion Business Media Pvt. Ltd. were parties to a joint venture with Bloomberg LP, the parent of Bloomberg News, which was terminated in November 2021. 

NDTV would be a far bigger stake in the sand for the Adani Group, with its three news channels and big online audience. 

It’s unlikely to be the last, as Adani — fueled by a rapid rise to the top of global wealth rankings — pushes into green energy, airports, data centers, digital services and cement as he diversifies away from coal businesses his empire was initially built on. 

The two tycoons together have the potential — and maybe the relationship — to remake the face of the Indian economy. 

“They have big pockets,” said Pradhan, the journalism professor at Indian Institute of Mass Communication. “They can afford losses and give the competition a run for their money.”

©2022 Bloomberg L.P.

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What to stream this weekend: ‘Civil War,’ Snow Patrol, ‘How to Die Alone,’ ‘Tulsa King’ and ‘Uglies’

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Hallmark launching a streaming service with two new original series, and Bill Skarsgård out for revenge in “Boy Kills World” are some of the new television, films, music and games headed to a device near you.

Also among the streaming offerings worth your time as selected by The Associated Press’ entertainment journalists: Alex Garland’s “Civil War” starring Kirsten Dunst, Natasha Rothwell’s heartfelt comedy for Hulu called “How to Die Alone” and Sylvester Stallone’s second season of “Tulsa King” debuts.

NEW MOVIES TO STREAM SEPT. 9-15

Alex Garland’s “Civil War” is finally making its debut on MAX on Friday. The film stars Kirsten Dunst as a veteran photojournalist covering a violent war that’s divided America; She reluctantly allows an aspiring photographer, played by Cailee Spaeny, to tag along as she, an editor (Stephen McKinley Henderson) and a reporter (Wagner Moura) make the dangerous journey to Washington, D.C., to interview the president (Nick Offerman), a blustery, rising despot who has given himself a third term, taken to attacking his citizens and shut himself off from the press. In my review, I called it a bellowing and haunting experience; Smart and thought-provoking with great performances. It’s well worth a watch.

— Joey King stars in Netflix’s adaptation of Scott Westerfeld’s “Uglies,” about a future society in which everyone is required to have beautifying cosmetic surgery at age 16. Streaming on Friday, McG directed the film, in which King’s character inadvertently finds herself in the midst of an uprising against the status quo. “Outer Banks” star Chase Stokes plays King’s best friend.

— Bill Skarsgård is out for revenge against the woman (Famke Janssen) who killed his family in “Boy Kills World,” coming to Hulu on Friday. Moritz Mohr directed the ultra-violent film, of which Variety critic Owen Gleiberman wrote: “It’s a depraved vision, yet I got caught up in its kick-ass revenge-horror pizzazz, its disreputable commitment to what it was doing.”

AP Film Writer Lindsey Bahr

NEW MUSIC TO STREAM SEPT. 9-15

— The year was 2006. Snow Patrol, the Northern Irish-Scottish alternative rock band, released an album, “Eyes Open,” producing the biggest hit of their career: “Chasing Cars.” A lot has happened in the time since — three, soon to be four quality full-length albums, to be exact. On Friday, the band will release “The Forest Is the Path,” their first new album in seven years. Anthemic pop-rock is the name of the game across songs of love and loss, like “All,”“The Beginning” and “This Is the Sound Of Your Voice.”

— For fans of raucous guitar music, Jordan Peele’s 2022 sci-fi thriller, “NOPE,” provided a surprising, if tiny, thrill. One of the leads, Emerald “Em” Haywood portrayed by Keke Palmer, rocks a Jesus Lizard shirt. (Also featured through the film: Rage Against the Machine, Wipers, Mr Bungle, Butthole Surfers and Earth band shirts.) The Austin noise rock band are a less than obvious pick, having been signed to the legendary Touch and Go Records and having stopped releasing new albums in 1998. That changes on Friday the 13th, when “Rack” arrives. And for those curious: The Jesus Lizard’s intensity never went away.

AP Music Writer Maria Sherman

NEW SHOWS TO STREAM SEPT. 9-15

— Hallmark launched a streaming service called Hallmark+ on Tuesday with two new original series, the scripted drama “The Chicken Sisters” and unscripted series “Celebrations with Lacey Chabert.” If you’re a Hallmark holiday movies fan, you know Chabert. She’s starred in more than 30 of their films and many are holiday themed. Off camera, Chabert has a passion for throwing parties and entertaining. In “Celebrations,” deserving people are surprised with a bash in their honor — planned with Chabert’s help. “The Chicken Sisters” stars Schuyler Fisk, Wendie Malick and Lea Thompson in a show about employees at rival chicken restaurants in a small town. The eight-episode series is based on a novel of the same name.

Natasha Rothwell of “Insecure” and “The White Lotus” fame created and stars in a new heartfelt comedy for Hulu called “How to Die Alone.” She plays Mel, a broke, go-along-to-get-along, single, airport employee who, after a near-death experience, makes the conscious decision to take risks and pursue her dreams. Rothwell has been working on the series for the past eight years and described it to The AP as “the most vulnerable piece of art I’ve ever put into the world.” Like Mel, Rothwell had to learn to bet on herself to make the show she wanted to make. “In the Venn diagram of me and Mel, there’s significant overlap,” said Rothwell. It premieres Friday on Hulu.

— Shailene Woodley, DeWanda Wise and Betty Gilpin star in a new drama for Starz called “Three Women,” about entrepreneur Sloane, homemaker Lina and student Maggie who are each stepping into their power and making life-changing decisions. They’re interviewed by a writer named Gia (Woodley.) The series is based on a 2019 best-selling book of the same name by Lisa Taddeo. “Three Women” premieres Friday on Starz.

— Sylvester Stallone’s second season of “Tulsa King” debuts Sunday on Paramount+. Stallone plays Dwight Manfredi, a mafia boss who was recently released from prison after serving 25 years. He’s sent to Tulsa to set up a new crime syndicate. The series is created by Taylor Sheridan of “Yellowstone” fame.

Alicia Rancilio

NEW VIDEO GAMES TO PLAY

— One thing about the title of Focus Entertainment’s Warhammer 40,000: Space Marine 2 — you know exactly what you’re in for. You are Demetrian Titus, a genetically enhanced brute sent into battle against the Tyranids, an insectoid species with an insatiable craving for human flesh. You have a rocket-powered suit of armor and an arsenal of ridiculous weapons like the “Chainsword,” the “Thunderhammer” and the “Melta Rifle,” so what could go wrong? Besides the squishy single-player mode, there are cooperative missions and six-vs.-six free-for-alls. You can suit up now on PlayStation 5, Xbox X/S or PC.

— Likewise, Wild Bastards isn’t exactly the kind of title that’s going to attract fans of, say, Animal Crossing. It’s another sci-fi shooter, but the protagonists are a gang of 13 varmints — aliens and androids included — who are on the run from the law. Each outlaw has a distinctive set of weapons and special powers: Sarge, for example, is a robot with horse genes, while Billy the Squid is … well, you get the idea. Australian studio Blue Manchu developed the 2019 cult hit Void Bastards, and this Wild-West-in-space spinoff has the same snarky humor and vibrant, neon-drenched cartoon look. Saddle up on PlayStation 5, Xbox X/S, Nintendo Switch or PC.

Lou Kesten

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Trump could cash out his DJT stock within weeks. Here’s what happens if he sells

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Former President Donald Trump is on the brink of a significant financial decision that could have far-reaching implications for both his personal wealth and the future of his fledgling social media company, Trump Media & Technology Group (TMTG). As the lockup period on his shares in TMTG, which owns Truth Social, nears its end, Trump could soon be free to sell his substantial stake in the company. However, the potential payday, which makes up a large portion of his net worth, comes with considerable risks for Trump and his supporters.

Trump’s stake in TMTG comprises nearly 59% of the company, amounting to 114,750,000 shares. As of now, this holding is valued at approximately $2.6 billion. These shares are currently under a lockup agreement, a common feature of initial public offerings (IPOs), designed to prevent company insiders from immediately selling their shares and potentially destabilizing the stock. The lockup, which began after TMTG’s merger with a special purpose acquisition company (SPAC), is set to expire on September 25, though it could end earlier if certain conditions are met.

Should Trump decide to sell his shares after the lockup expires, the market could respond in unpredictable ways. The sale of a substantial number of shares by a major stakeholder like Trump could flood the market, potentially driving down the stock price. Daniel Bradley, a finance professor at the University of South Florida, suggests that the market might react negatively to such a large sale, particularly if there aren’t enough buyers to absorb the supply. This could lead to a sharp decline in the stock’s value, impacting both Trump’s personal wealth and the company’s market standing.

Moreover, Trump’s involvement in Truth Social has been a key driver of investor interest. The platform, marketed as a free speech alternative to mainstream social media, has attracted a loyal user base largely due to Trump’s presence. If Trump were to sell his stake, it might signal a lack of confidence in the company, potentially shaking investor confidence and further depressing the stock price.

Trump’s decision is also influenced by his ongoing legal battles, which have already cost him over $100 million in legal fees. Selling his shares could provide a significant financial boost, helping him cover these mounting expenses. However, this move could also have political ramifications, especially as he continues his bid for the Republican nomination in the 2024 presidential race.

Trump Media’s success is closely tied to Trump’s political fortunes. The company’s stock has shown volatility in response to developments in the presidential race, with Trump’s chances of winning having a direct impact on the stock’s value. If Trump sells his stake, it could be interpreted as a lack of confidence in his own political future, potentially undermining both his campaign and the company’s prospects.

Truth Social, the flagship product of TMTG, has faced challenges in generating traffic and advertising revenue, especially compared to established social media giants like X (formerly Twitter) and Facebook. Despite this, the company’s valuation has remained high, fueled by investor speculation on Trump’s political future. If Trump remains in the race and manages to secure the presidency, the value of his shares could increase. Conversely, any missteps on the campaign trail could have the opposite effect, further destabilizing the stock.

As the lockup period comes to an end, Trump faces a critical decision that could shape the future of both his personal finances and Truth Social. Whether he chooses to hold onto his shares or cash out, the outcome will likely have significant consequences for the company, its investors, and Trump’s political aspirations.

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Arizona man accused of social media threats to Trump is arrested

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Cochise County, AZ — Law enforcement officials in Arizona have apprehended Ronald Lee Syvrud, a 66-year-old resident of Cochise County, after a manhunt was launched following alleged death threats he made against former President Donald Trump. The threats reportedly surfaced in social media posts over the past two weeks, as Trump visited the US-Mexico border in Cochise County on Thursday.

Syvrud, who hails from Benson, Arizona, located about 50 miles southeast of Tucson, was captured by the Cochise County Sheriff’s Office on Thursday afternoon. The Sheriff’s Office confirmed his arrest, stating, “This subject has been taken into custody without incident.”

In addition to the alleged threats against Trump, Syvrud is wanted for multiple offences, including failure to register as a sex offender. He also faces several warrants in both Wisconsin and Arizona, including charges for driving under the influence and a felony hit-and-run.

The timing of the arrest coincided with Trump’s visit to Cochise County, where he toured the US-Mexico border. During his visit, Trump addressed the ongoing border issues and criticized his political rival, Democratic presidential nominee Kamala Harris, for what he described as lax immigration policies. When asked by reporters about the ongoing manhunt for Syvrud, Trump responded, “No, I have not heard that, but I am not that surprised and the reason is because I want to do things that are very bad for the bad guys.”

This incident marks the latest in a series of threats against political figures during the current election cycle. Just earlier this month, a 66-year-old Virginia man was arrested on suspicion of making death threats against Vice President Kamala Harris and other public officials.

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