Mergers, acquisitions: Way forward for media companies


MUMBAI: Financing the growth in India's media and entertainment industry is one matter that concerns most media companies heads. While the information technology (IT) sector and the media industry are similar in nature given that both are IP driven as against asset driven and that both are human capital intensive; the media industry's growth has been at a rate of less than 20 per cent.

ICICI Venture director (investments) Bala Deshpande threw light on a few aspects of financing growth in India's media and entertainment industry. She said that even though the Indian IT and media sectors were somewhat similar, the former however has had far more success in fund raising. This raises the question as to whether investors had failed to understand the media sector.

Deshpande said, "When we invested in Aaj Tak we knew what the group was all about. It was an early stage risk because no one had heard of a 24 hour channel but our bet worked. We believed in Aroon Purie and his management, so backing a great management is very important. This is particularly pertinent for media."

She also pointed out that if consolidation was not happening in the media sector then the way forward would be mergers and acquisitions. "One question would be how to make the media industry relevant? It is relevant but it is not on the radar screen of investors," said she.

"We would like to invest more in media companies as there is immense potential there. We have not seen the kind of size, scale and attractiveness in the Indian media industry as it is in the western countries," she said.

Latest Reads

Casbaa becomes the Asia Video Industry Association

At an Extraordinary General Meeting of members today, Casbaa overwhelmingly approved the adoption of a new constitution and new name.

Specials Event Coverage Occasions
Wizcraft’s 4th broadway styled bollywood musical stage show comes to kingdom of dream

After a glorious run in Mumbai with over 100 shows, Balle Balle - The Biggest and Craziest Indian Wedding Musical theatrical show, is all set to woo audiences in Delhi NCR.

Specials Event Coverage Occasions
ConnecTechAsia Successful in Bridging the Digital Divide for Governments, Cities and Enterprises with Showcase of Latest Tech and Trends

ConnecTechAsia, the inaugural mega technology event comprising BroadcastAsia, CommunicAsia and the new NXTAsia wrapped up last week after an exciting three days of exhibitions and a summit covering the latest innovations in cloud, blockchain, AI, VR/AR, IoT, robotics, 5G, IP broadcasting, OTT and...

Specials Event Coverage Occasions
Lessons Learned With Bitcoin

Blockchain technology is one of the newest buzzwords in business. It is hardly surprising considering that the tech is having such an impact over so many different industries.

Specials Promonet feature
The company is collaborating with Lakme Fashion Week and designer Anita Dongre

World Environment Day - 2018 is going to be special as India is hosting global celebrations of the event today. To commemorate the occasion, Reliance Industries Ltd (RIL) has launched a special T-shirt, branded ?The Earth Tee? and designed by renowned fashion designer Anita Dongre, under its unique...

Specials Event Coverage Occasions
Promaxbda India 2018 announces Puja Vohra and Glenn Urquhart as their masterclass speakers

PromaxBDA India has announced its first 2 Masterclass speakers for the 15th edition of its annual conference and awards property in India, which will take place on 23rd May 2018. Speaking at the Masterclass are truTV?s Puja Vohra and creative mastermind Glenn Urquhart.

Specials Event Coverage Occasions
ABBY Awards 2018 shortlists announced

The coveted ABBY Awards that recognizes and rewards excellence across Advertising, Marketing and Media has now announced that the shortlists for the 2018 edition have started being posted, by category.

Specials Event Coverage Occasions
Ficci Frames and market concludes on grand note

The FICCI Frames and the newly launched content market as part of FICCI Frames 2018 concluded on a grand note.

Specials Event Coverage Ficci Frames
Screen Density: Lessons from the world & Exploring new business models

n Day 2 of FICCI FRAMES happening in Mumbai, there was a session on Screen Density in India attended by some eminent panelists consisting of Mr. William Feng, VP, Greater China, MPA, Kurt Rieder, Head-Theatrical Asia, 20th Century Fox, Kapil Agarwal, Joint MD, UFO, Kamal Gianchandani, Chief of...

Specials Event Coverage Ficci Frames

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories