Is Rediff.com up for sale? Well there are reports quoting sources which are very certain that the talks have progressed to an advanced stage and it is only a matter of time before a deal is finalised. Interestingly Rediff chief executive officer Ajit Balakrishnan says he has not mandated anyone to sell his shares and has denied reports of a potential sale. On the other hand, he says he has some great plans for the future of Rediff.
Reports suggest that talks for Rediff, one of the earliest online businesses from India, were first being held with two prospective buyers but one of them has opted out and some others have moved in. These sources also say it would be a share swap deal.
The report also quotes someone involved in the negotiations for a possible sale of Rediff and that person has said they found the valuation of the company too high. There are people who believe that any of Amazon or Flipkart could have annexed Rediff to their fold. Or GoDaddy for that matter. But none of these companies have responded to these developments.
There is a bit of a confusion on the exact ownership pattern of Rediff.com. Details culled from the government filings dated about six months back show three figures: 52.7% with corporate bodies, 15.87% with a few individuals and the rest 31.38% with others. But there is another report, which suggests that the promoters have since bought back some shares and have consolidated their hold.
In his reaction to the news, Ajit Balakrishnan has even indicated that he is personally involved with the development of a new computer code that can change the way news analysis is carried out.
As for the financials, the topline is definitely falling down but there has been a substantial reduction in the losses incurred. The debt-equity ratio too is healthy at less than 1.