Disney Buys UTV

[Sotiris]

Disney is close to finalizing the acquisition of Mumbai-based Indiagames, one of India’s leading developers and publishers of online and mobile games, according to sources.

In July, Disney bought Indian media conglomerate UTV, which owned a stake in Indiagames, so Disney’s acquisition would consist of purchasing the remaining shares it does not already own.

One source says the company is being valued at $80 million to $100 million, and that Disney already owns roughly half of the company, meaning it will end up spending as much as $50 million on the remaining stake. Other Indiagames shareholders include Adobe and Cisco Systems.

Indiagames, which was founded by Gondal in 1999, has more than 300 employees and has offices in Mumbai, Beijing, London and Los Angeles, according to its Web site. Some of its recent games include Cricket WorldCup Fever, Bruce Lee Dragon Warrior, Godzilla — Monster Mayhem and Acorn Mafia, on the iPhone and iPad. It wasn’t until recently that it experimented with making social games on Facebook.

The acquisition by Disney could be following up on recent statements the company made to investors, saying it was interested in building a larger footprint in other countries, especially in India. Additionally, Disney identified mobile content as one of the key ways to distribute its brand.

A recent profile of Indiagames in Business Standard reported that the company recorded a profit of $400,000 on revenues of $11 million in its last fiscal year (that is converted from Rs 2 crore and Rs 54.5 crore, respectively).

Source: http://allthingsd.com/20111006/disney-s ... ndiagames/

[Semaj]

Good God, how much more crap does Disney need to buy?

[Sotiris]

The Walt Disney Co. announced Wednesday it will acquire, via a subsidiary, a controlling interest in Mumbai-based UTV, one of India’s leading media and entertainment companies.

While a joint statement did not specify the financial terms of the deal, Disney already owned 50.44 percent of publicly-listed UTV and last July, it made an offer of $454 million to acquire the balance stake to gain a controlling interest in the group.

"The acquisition will be completed through a successful delisting offer and will enable Disney to integrate UTV’s current operations," the statement said. In addition, UTV CEO Ronnie Screwvala has been named managing director, The Walt Disney Co. India, reporting to Walt Disney International chairman Andy Bird.

Disney first acquired a 14.9 percent stake in UTV for about $15 million in 2006. Subsequently in 2008, Disney upped its stake to 32.1 percent for about $230 million, which also gave Disney a 15 percent stake (valued at about $30 million) in UTV's broadcasting unit UTV Global Broadcasting Limited. Last year, Disney upped its stake to 50.44 percent in UTV, leaving co-founder Ronnie Screwvala and three other backers holding a 19.82 percent stake.

The gradual acquisition of UTV enhances Disney's position here since the company first established its India subsidiary in 2004. Via that subsidiary, it runs a broadcasting venture, including the Disney Channel, character licensing and film production. In 2008, Disney co-produced its first Indian film with veteran Bollywood banner Yash Raj Films, animated feature Roadside Romeo.

In addition to being a major broadcaster running a variety of channels such as kids outlet Hungama and youth channel UTV Bindaas, UTV owns one of India's leading studios -- UTV Motion Pictures -- which has produced major Bollywood titles including recent hit Delhi Belly while coproducing South Indian films such as 2011's Muran.

“Increasing our brand presence and reach in key international markets is a cornerstone of our growth strategy. This acquisition expands our footprint significantly and allows us to more effectively build, monetize and brand multi-platform franchises, and deliver a rich library of content to the world’s second largest population,” said Bird. “We couldn’t be more pleased that Ronnie, with his vast experience and proven track record, will now run our operations in India. Under his leadership, we will be able to deliver more programming on more platforms to this considerable audience.”

As a result of this acquisition and building on UTV’s existing position in the industry, Disney is expected to be a major film studio here producing both UTV and Disney-branded local films.

Disney's earlier acquisiton of UTV's broadcasting division brought kids channel Hungama into its fold, boosting its presence in the kids television market where it already runs the Disney Channel and Disney XD. As a leading broadcaster running six channels with distribution in 20 countries, UTV's acquisition further boosts Disney's position in television expanding its reach to over 100 million viewers weekly in households across India. Disney will also gain a significant presence in digital media with the addition of UTV’s mobile gaming company Indiagames.

“In combining the creative capabilities of each company we will integrate a large stable of vibrant brands and franchises in the branded entertainment space,” added Screwvala. “With the middle class expected to grow from 50 million to more than 500 million people by 2025, this market offers huge potential for us to deliver quality branded entertainment to consumers.”

Source: http://www.hollywoodreporter.com/news/d ... ias-286342

[jazzflower92]

All they need to do now is buy an army and they will be set for world domination.

[Super Aurora]

Good God, how much more crap does Disney need to buy?

Disney got inspired by Reyquila.

[Sotiris]

India approved a $180 million foreign direct investment plan by U.S. media group Walt Disney (DIS.N), part of a new push to clear a backlog of investment proposals as the finance ministry seeks to inject new life into the slowing economy. In total, Finance Minister P. Chidambaram cleared 10 foreign direct investment proposals worth 12.6 billion rupees, on the recommendation of the Foreign Investment Promotion Board (FIPB), the government said on Thursday.

Disney had in February acquired a controlling stake in UTV, one of India’s premier media and entertainment companies, then delisted it after spending about $375 million to buy out other investors. Disney has plans to restructure its digital assets in India to drive growth in segments like mobile, online and interactive TV, the company says on its India website.

A Disney India spokeswoman declined to comment when asked about the investment ruling. One industry analyst said the planned investment was related to the UTV acquisition. The company had asked the government permission to invest 10 billion rupees to expand its business in India and invest in subsidiaries including broadcasting companies, the government said.

Since taking charge of the ministry last month, Chidambaram has directed officials to put FDI approvals on fast track as part of a drive to revive investor confidence after growth slowed to its slowest pace in nearly a decade. “We have been directed by the minister to meet more frequently and clear FDI proposals as early as possible,” said a senior official in the finance ministry, who declined to be named.

The FIPB is due to next meet on Friday to consider 10 FDI proposals from pharmaceutical companies, including eight that had been deferred in earlier meetings, he said. “Most of the proposals are expected to be approved,” the official said.

Source: http://www.firstpost.com/fwire/fdi-nod- ... 28215.html

[Sotiris]

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