BUSINESS

Vir Sanghvi quits NewsX

By A Correspondent
January 29, 2008 12:53 IST

Barely days after Vir Sanghvi, CEO of News X (the news channel to be launched by INX Media), and INX Media's chief strategy officer Peter Mukerjea, declared a truce, the two have decided to part ways with immediate effect, said an Indiantelevision.com report on Tuesday.

The report said that NewsX will soon name a replacement for Sanghvi and that the 'separation' came about in an 'atmosphere of goodwill and amicability.'

Last week, media reports had suggested that NewsX CEO Vir Sanghvi had been asked to leave. However, speaking to Business Standard, Mukerjea and Sanghvi said: "We are old friends and are confident that we can resolve any difference that might have arisen in the spirit of goodwill and friendship."

When asked if Sanghvi was leaving as reported by the media, INX Media chairperson Indrani Mukerjea had said: "We are continuing as we have earlier," and refused to elaborate.

The conflict in the top management became public last week with both sides accusing each other of mismanagement of the TV business. Sources said that the investors were unhappy with the performance of the company's entertainment channel and Indrani Mukerjea's 'interference' in the news business.

The Indrani Mukerjea camp hinted that Sanghvi was being asked to leave for delaying the news channel. INX Media's commitment to its investors says that the news channel must be launched before March 31.

INX Media is promoted by Peter Mukherjea (formerly of Star India) and Indrani Mukherjea and funded by Temasek Holdings via Dunearn Investments, New Silk Route, New Vernon, Kotak and the SREI Group.

Indrani Mukerjea and Vir Sanghvi, incidentally, were the only two members on the board of NewsX. But Indrani Mukerjea is the majority shareholder and holds over 51 per cent in the news channel. INX Media, meanwhile, holds 26 per cent in the company. Vir Sanghvi also has a 3 per cent stake in the news channel.

Additional inputs: Business Standard

A Correspondent

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