This Documentary film –Brokering News explores the Darker side of the Print and Electronic Media. This film is produced by Prasar Bharati and Doordarshan and Directed by Umesh Aggarwal A former journalist.
This Documentary shows how the Journalists in print/media are involved in trading the news and how news is bought and sold in print and electronic media by politicians, corporate houses, sportspersons and film personalities.
Case Study :RCOM Shares propped up using paid news?
During June 2010 media was repeatedly reporting on likely stake sale in RCOM. There were news on merger either with Etisalat, AT&T or MTN and there is a continual denial of news from the opposite parties three days in a row. Here is below the information extracted from various new websites. Almost all the Indian Business News Portals had repeating the same kind of news and possibly they could done the same in the media too.
Time Line of RCOM Rumors and Denials
(Results – Announcements 30-May 21:35) Reliance Communications reports net loss of Rs 757.99 crore in the year ended March 2011
( 31-May 10:26) RCom slips after poor FY 2011 earnings
( 1-Jun 13:26) RCom extends gains on plan to sell stake in tower arm.
( 2-Jun 16:04) RCom leads gainers in ‘A’ group.
( 2-Jun 09:15) RCom rings as Etisalat eyes stake.
( 3-Jun 10:24)RCom on a roll on buzz it may merge with MTN
( 4-Jun 09:36) RCom slides as MTN denies merger plan.
( 7-Jun 15:28) RCom gains in value and volume. ETISALAT Declines that it doesnt makes any such offer with RCOM.
(7-Jun – 15:29)RCom, AT&T in informal merger talks
( 8-Jun, 15.29 ) RCom cools off as AT&T denies talks
( 21-Jun 11:53) RCom recovers after Monday’s 7.9% slide
RCom bucks the trend on buzz Etisalat to buy 26% stake (19-Jul 09:39 )
During June 2 there is a high volume activity in RCOM due to the media reporting that Etisalat Eyes 25% Stake in RCOM. RCOM Shares Went up 10%. Few days later Etisalat’s chairman Mohammad Omran was quoted by the media as saying that Etisalat did not make any offer to Reliance Communications (RCom).
On 3rd June,2010 once again media reports that RCOM will merge with MTN followed by denial from MTN on 4th Jun 2010.
On 7th June, 2010 – Now this time media reported that RCOM and AT&T could merge which is followed by denial from AT&T on 8th June 2010. By that time RCOM share price surged from Rs 140 to Rs 178 in just four trading sessions!
After that there are no news about the RCOM Merger or Stale sale and the volumes in the RCOM shares dried over the period of time and RCOM share achieves it year high during 28th June 2010. Rest you know the history that it falls from its high of 207.8(28th Jan 2010) to the all time low of Rs 62(21st Dec 2011)
All the media reports found to be false which doubts the credibility of media reporting.
If the 4th pillar of democracy gets involved in such corrupt practices then its really dangerous for the democracy.