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Mumbai:
The Walt Disney Company (NYSE: DIS) announced today it will acquire,
through a subsidiary, a controlling interest in UTV, one of India’s
premier media and entertainment companies. The acquisition will
be completed through a successful delisting offer and will enable
Disney to integrate UTV’s current operations. In addition,
UTV CEO Ronnie Screwvala has been named Managing Director, The Walt
Disney Company India reporting to Andy Bird, Chairman, Walt Disney
International.
“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 Mr. 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 success
in the market, Disney will be India’s leading film studio and
will produce both UTV and Disney-branded local films.
UTV is the leading TV producer in India with distribution in 20
countries in seven languages and across 27 channels. Its six owned
channels have emerged as the fastest growing cable and satellite
network in India. In three years UTV has also become a leading broadcast
network in the country. After the transaction, Disney will be one
of the leading broadcasters reaching more than 100 million viewers
weekly in households across India. Disney will also gain a significant
presence in digital media with the addition of UTV’s Indiagames,
the country’s number one mobile gaming company, to its portfolio.
“In combining the creative capabilities of each company we
will integrate a large stable of vibrant brands and franchises in
the branded entertainment space,” said Mr. 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,” he
said.
Disney currently owns India’s leading kids’ television
networks Disney Channel, Disney XD and Hungama and is the largest
retail character licensor in the country. The Company’s mobile,
internet and gaming division creates some of India’s most popular
content, including Club Penguin, the virtual world for kids that
launched in India in 2010.
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