(10 July 2008 10:30 pm)

MUMBAI: The trend of Indian media companies making acquisitions overseas is catching on. Valuable Group, which founded and operates UFO Moviez, has acquired all the assets, trademarks, IPR, and alliances of MovieBeam that Disney, Intel, Cisco and other private equity investors had spent in creating this 'Push Video on Demand' service.

MovieBeam was launched by Disney in 2005 and has so far seen investments of $250 million. Movies were beamed wirelessly into customers' homes to a set-top box (STB) through this service.

Valuable group acquired Movie Beam through private equity advisory firm Dar Capital. In March 2007 Disney had sold MovieBeam to Movie Gallery Inc. after spinning it off in January 2006.

"We have paid an upfront amount and have an ongoing revenue share arrangement with Dar Capital. We will be rolling out the service in the US and India before we take it elsewhere," Valuable Group head Sanjay Gaikwad tells Indiantelevision.com.

Valuable Group has expanded its presence to Los Angeles and a development facility in Seattle through this acquisition.

"This acquisition was a strategic fit in our global expansion strategy for our media and entertainment vertical. Through this acquisition, Valuable Group will further establish itself as a leader in the media and entertainment space allowing us to deliver ethnic and Hollywood content to homes and the hospitality industry worldwide. Films will be delivered in High Definition and viewers will get access to library films as well as the latest releases on a first day first show basis," says Gaikwad.

Valuable Group has earmarked an investment of $100 million over the next two years for the re-launch of this service in North America, UK and other overseas markets.

Adds MovieBeam CEO and Valuable Group executive director Ameya Hete, "This service will completely redefine the on-demand entertainment market. We have added some cutting edge features to the MovieBeam service that will bring additional and currently unrealized revenues back to the entertainment industry and the deserving constituents. We will be rolling out the service by the end of 2008 in three markets."

After coming out with an infrastructure business process platform for the gaming industry, Valuable Group launched UFO Moviez, a digital cinema network servicing outfit which has spread to over 1200 theatres.

Valuable Group's acquisition is not an isolated incident of an Indian media company wanting to travel overseas. Earlier TIML Golden Square, a wholly owned subsidiary of Times group, bought Virgin Radio Holdings Ltd. and its subsidiaries in the UK for £53.2 million ($105 million) from Scottish media company SMG Plc. Reliance ADAG is in talks for a joint venture with Spielberg's DreamWorks.