Deccan Chronicle Holdings Limited, the publishers of Deccan Chronicle English daily, Andhra Bhoomi Telugu paper and financial daily Financial Chronicle, facing a liquidy crisis, has been in news for over two weeks now.
However, what DC is offering now is a fascinating insight into how rumours can spread like wildfire in the media, both print and electronic nationally, with only a limited amount of available information.
Greatandhra.com tried to take a sneak peak into the whole issue of media coverage on the DC controversy where identities are being masked and rumours spread like wildfire and where truth hardly come by, by talking to some journalists and to analysts at some reputed stock broking and consulting firms.
"With limited sources and with pressures mounting to score exclusives over their competition, most people are resorting to yellow journalism, keeping their fellow journalists (DC employees)' flagging hopes at stake," says a senior English journalist.
Though Times of India reported, based on information filed with the Registrar of Companies, that the promoters of DC owed over Rs 1,500 crore to various banks and financial institutions, the million dollar question now is ... Where exactly did all this money gone into?
While some say that its promoter, who leads a very lavish life, only next to UB group's Vijay Mallya, spending on horses and what not, few others argue that he had invested over Rs 1,000 crore in in its Indian Premier League team Deccan Chargers, which apparently is making losses consistently season over season.
"It looks like DC had invested more than Rs 1,000 crore in the last few years. I believe, it must have invested in Deccan Chargers. Recently, they evinced interests in aviation and in fact its a surprise where it had invested the money. Perhaps, we will get a clear picture in few weeks once the probe by watch dog SEBI (Securities and Exchange Board of India) is complete," comments an analyst.
Notwithstanding the fact that the genuine information is limited and taking advantage of the radio silence from the DC management, the media personnel are sparking rumours with half-baked stories.
And, these include that DC may dig itself out of this hole by selling itself. The result ... rumours andmore rumours.
"They wish to sell off their loss-making IPL team and have already in talks with Religare Capital. Though they are expecting Rs 1,000 crore, they may not even get Rs 100 crore through the sale," says one stock broker.
With this opinion putting a full stop to the IPL sale rumours, the media has brought to the fore DB Group, the publisher of leading Hindi daily Dainik Bhaskar, and HT Media, a listed company that publishes The Hindustan Times, as prospective buyers of DC!
And, they have a reason too ... Both the firms that are 'reportedly' in fray have little or no exposure to the south states.
"While DB Group is looking at expanding its horizons to south just to eat away the chunk of Hindi dailies like Hindi Milaap besides setting a base for its English news paper DNA, which till date didn't have presence in south India, HT Media has a different reason. It wants to take on the Times of India, to which it is already giving tough times in the north, even down south," feels an analyst.
All said and done .... says a DC employee. "Due to the uncertainty we are a worried lot now. What we all want is we want to be in the right hands (read management)."
What exactly happened at DC and what exactly will happen in the near future will be known only after a week or two from now.
