Chairman Ronnie Screwvala, who is the single largest shareholder in UTV, said that News Corp has already agreed to the offer. "Both the parties have arrived at an in-principle understanding," he added.

It is learnt that the final details relating to the price at News Corp's stake is being worked out, and will take another two to three weeks to be finalised.

UTV was floated in 1994 as 51:49 venture by Screwvala and associates with News Corp. Later, when leading foreign institutional investor EM Warburg Pincus was roped in as an equity partner, News Corp's stake was reduced to 37 per cent. Warburg Pincus holds 24 per cent in the company.

Screwvala told The Financial Express that UTV has major expansion plans, entailing substantial infusion of funds. He added that negotiations were on with financial institutions.

Screwvala said that the company had a fruitful relationship with News Corp, and "now I need to align the company to the Indian environment and focus on our thrust areas that include multimedia, motion picture production, sports, animation, radio, multiplexes, over and above our core business which is TV content programming."

Warburg Pincus has also been unequivocal in its support to UTV. In a press release, Dalip Pincus, partner at Warburg Pincus said: "We are completely committed to UTV and the group for the long term. The promoters and management team have built a well-diversified media company and it is entities like this that will put the country on the international map."

UTV is the most diverse media and television company in the country with 11 divisions and three subsidiaries involved in all aspects of the audio and video industry with a countrywide presence.