Television

Walt Disney to buy out Hungama TV, take 15% stake in UTV

MUMBAI: The Walt Disney Company today announced that it has entered into an agreement to wholly acquire Hungama TV and take a 14.9 per cent equity interest in media company UTV Software Communications Ltd, in each case subject to regulatory approval.


Disney has entered into an agreement to acquire 100 per cent of United Home Entertainment LTD (Hungama TV) at an enterprise valuation of $30.5 million and purchase equity stake of 14.9 per cent of expanded capital in UTV Software Communications LTD, at a consideration of $ 14 million. So, the total combined investment is $ 44.5 million.


The announcement confirms the news first put out by Indiantelevision.com that Disney would be buying into Hungama TV and picking up a small stake in UTV.


Hungama TV COO Zarina Mehta will be working closely with the Disney team for the next three months to ensure a smooth organisational and operational integration of Hungama TV into Disney‘s portfolio of kids channels. Post that Mehta will be working with Disney as a consultant for a period of six months to a year.


Once final, the acquisition will firmly establish Disney‘s ties in a rapidly growing media market where local content product is key. The combination of the three kids‘ channels -- Disney Channel, Toon Disney and Hungama TV -- will establish Disney as a strong contender against the market leader Turner India (Cartoon Network and Pogo).


"India is a long term strategic priority for the Walt Disney company. The acquisition of Hungama TV and the investments in UTV will significantly advance our presence in India and allow us to develop a strategic relationship with one of the countries leading integrated media companies," said Walt Disney International president Andy Bird.


"Not only will we be acquiring a great channel asset, we will also be able to participate in UTV‘s diversified businesses and bring to UTV our global media and synergy expertise, including developing and distributing high quality family friendly content in nearly 200 countries worldwide and expanding related franchises across film, TV, music, merchandise, new media and live entertainment," said Bird.


When queried on Disney‘s plans to launch a theme park in India, Bird answered in the negative. "We are not looking at a theme park in India," he said.


"TV is and will continue to be the major growth engine in building franchise affinity in India. Integrating Hungama TV in the Walt Disney Company‘s existing India channel portfolio of Disney Channel and Toon Disney will allow Disney to fortify its already strong presence in India‘s kids TV market," said Disney Channel Worldwide president Rich Ross.


When queried about the integration process of Hungama TV into Disney, Walt Disney Television International (Asia Pacific) senior vice president and managing director Nicky Parkinson said, "At present we are not sure how the integration will take place. We are in the process of finding out a way to best talk to kids. We are not here to cannabalise the market place. India is a relatively nascent market but one which has phenomenal potential."


"Hungama TV has proven its appeal to Indian children and families with compelling entertainment choices and has in a brief period built a strong management team and sucked out a leadership position in the competitive children‘s TV environment. We are also delighted that Disney has chosen to make a strategic investment in UTV, which will augment our business in India and around the world," said UTV group CEO Ronnie Screwvala.


Launched in September 2004, Hungama is a 24-hour Hindi-language entertainment cable channel for children and is currently in a close fight with Turner‘s Pogo channel for the the number two position in the Indian kids space behind leader Cartoon Network. Hungama TV has a staff strength of 71.


Disney currently reaches over 107 million television homes in India through a programme block on Doordarshan and Disney Channel and Toon Disney/Jetix reached approximately 30 million homes on cable and satellite in India.


UTV has a diversified set of businesses, which includes television and film production and distribution, animation production, and other services.


Also Read:
UTV scrip up on Disney deal buzz

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/FOX.jpg?itok=Bhdsm2nj
Disney makes $70.3 billion counterbid for Twenty-First Century Fox

21st Century Fox has announced that it has entered into an amended and restated merger agreement with The Walt Disney Company pursuant to which Disney has agreed to acquire for a price of $38 per 21CF share the same businesses. Disney agreed to acquire under the previously announced merger...

Television Production House Post Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/mpa.jpg?itok=vqd31YXu
MPA REPORT: THE MARKET VALUE FOR SPORTS MEDIA RIGHTS TO SOAR 22% IN ASIA PACIFIC EX-CHINA TO REACH US$5.0 BILLION IN 2018

MPA REPORT: THE MARKET VALUE FOR SPORTS MEDIA RIGHTS TO SOAR 22% IN ASIA PACIFIC EX-CHINA TO REACH US$5.0 BILLION IN 2018

Television TV Channels Sports
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/and.jpg?itok=xIv703YO
&pictures to air the World Television Premiere of the critically acclaimed Mukkabaaz on Saturday, 23rd June at 8pm

In a love story of a sportsman set in Bareilly, Vineet Kuma Singh plays a Kshatriya boxer who falls in love with a deaf-mute Brahmin woman. Co-produced and directed by National Film Award winner Anurag Kashyap, Mukkabaaz was screened at the 2017 Toronto International Film Festival and the 2017...

Television TV Channels GECs
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/disney.jpg?itok=_e6XbSdU
Disney appoints new creative officers for animation division

Jennifer Lee and Pete Docter have been named as new chief creative officers (CCOs) for Disney’s animation division. While Docter will handle the Pixar Animation Studios, Lee will head the Walt Disney Animation Studios.

Television Production House Post Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/shinde.jpg?itok=TZAJ4Ibs
Epic TV appoints Rajiee Shinde as president

Infotainment channel EPIC TV has announced the appointment of Rajiee M Shinde as president. In her new role at EPIC, she has been entrusted with the responsibility of expanding the business and building the EPIC network.

Television TV Channels Factual & Documentary
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/sell.jpg?itok=91wnij2K
Endemol Shine hires banks for a possible sale

Netherlands-based TV production company, Endemol Shine Group, has hired Deutsche Bank and Liontree to explore a potential sale that could be valued between $2- $4 billion including debt.

Television Production House Post Production
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/flix.jpg?itok=xMcG7N6B
Leap into the world of robots and cyber terrorists as &flix brings the premiere of ‘Ghost in the Shell’

&flix, the all-new destination for the most-awaited Hollywood hits, is all set to bring the Indian television premiere of the 2017 American sci-fi action film ‘Ghost in the Shell’, this Sunday, June 24 at 1 PM & 9 PM. The movie, which is part of the channel’s ‘Flix First Premiere’ property...

Television TV Channels English Entertainment
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/cnbc.jpg?itok=a0MUy3Eu
CNBC-TV18 announces the 8th edition of the india healthcare and wellness awards

CNBC-TV18, India’s leading English business news channel along with ICICI Lombard, announces the 8th edition of the‘Indian Healthcare and Wellness Awards.’ The awards will acknowledge and felicitate the best of medical and wellness service providers in the industry. The event will also serve as a...

Television TV Channels News Broadcasting
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2018/06/20/Mihir-Bhatt.jpg?itok=0_g71hzd
Times Network appoints Mihir Bhatt as chief editor - IPs

MUMBAI: Times Network, part of India’s largest media conglomerate, The Times Group, today announced the appointment of Mihir Bhatt as chief editor – IPs. In his new role, Mihir will spearhead efforts to create unique and content-rich offerings on all IPs of the network, in addition to his...

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories