Prannoy Roy, a co-founder of New Delhi Television Ltd (NDTV), resigned as a director from the media company after billionaire Gautam Adani's conglomerate secured majority control of NDTV. His departure marked a significant shift in the ownership and leadership of one of India's pioneering news channels.
Background of Prannoy Roy and NDTV
Prannoy Roy, along with Radhika Roy, co-founded NDTV in 1988, establishing it as a prominent independent news broadcaster in India. For decades, the Roys were the face of the organization, steering its editorial direction and strategic growth. Their resignation represented the end of an era for the media house, which had long been seen as a critical voice in the Indian media landscape.
The Acquisition by Adani Group
The primary reason for Prannoy Roy's departure was the acquisition of majority control of NDTV by the Adani Group. This takeover process involved several stages, culminating in the conglomerate's increased stake in the media company.
- Hostile Takeover Bid: Adani Group launched an indirect takeover bid for NDTV in August 2022, acquiring a substantial stake in a company linked to NDTV's founders.
- Open Offer: Following this, the Adani Group made an open offer to acquire an additional 26% stake from public shareholders, as required by Indian securities regulations.
- Majority Control Achieved: By late December 2022, Adani's conglomerate had successfully acquired more than 50% of NDTV's shares, thereby gaining majority control.
- Resignation of Founders: Subsequently, on December 30, 2022, Prannoy Roy and Radhika Roy resigned as directors from the NDTV board, acknowledging the change in ownership. This was a direct consequence of the Adani Group becoming the new controlling stakeholder.
Their resignation was a direct response to this significant change in the company's ownership structure, as the new majority owners would naturally assert their control over the company's board and operations.
Impact of the Leadership Change
The departure of its founders and the entry of a new conglomerate owner have profound implications for NDTV's editorial independence and operational strategies. It signifies a major transformation for the news organization, bringing it under the purview of a large business empire with diverse interests.
