Subhash Chandra-promoted Zee EntertainmentBSE 0.17 % Enterprises (ZEE) has announced 100% acquisition of 9X Media and INX Music for a total cash consideration of Rs 160 crore.
ET was first to report on April 20 this year that the ZEE was in advanced stages of discussion with private equity player New Silk Route (NSR) to buy 9X Media, which owns a clutch of music channels, including 9XM, for close to Rs 200 crore.
On July 19, ET once again reported that the deal was in final stages of negotiations and the price could be in the range of Rs 180-200 crore.
“The board of directors of the company at the meeting held on October 6 approved acquisition of 100% equity stake in two media entities- 9X Media and INX Music, from their existing shareholder at an aggregate cash consideration of Rs 160 crore,” the company said in a regulatory filing to BSE on Friday.
Punit Goenka, MD & CEO, ZEE, said, “Continuing with our strategy of expanding into regional markets and niche genres, we are pleased to announce this acquisition which strengthens our music portfolio. Music is an integral component of consumer’s entertainment pie and we will offer our consumers a wider array of choices through these channels.”
Goenka added that 9X channels will benefit from ZEE network’s strength to achieve higher growth potential and cost synergies.
9X Media, along with its subsidiaries, operates a bouquet of six music channels – 9XM (Latest Bollywood), 9X Jalwa (Evergreen Hindi), 9X Jhakaas (Marathi), 9X Tashan (Punjabi), 9XO (English), 9X Bajao (Hindi Classics). It also has a digital product, SpotboyE, offering Bollywood’s news, gossip, movie reviews and other updates.
Last year, Sony Pictures Networks India (SPN) agreed to buy 9X Media for Rs 220 crore. However, after due diligence, some legacy taxation issues were discovered, which could not be sorted out and SPN decided to walk out of the negotiation.
Zee has been active in the mergers and acquisitions space in the past couple of years. Recently, the group sold its sports broadcasting business, housed under Taj Television and operating under Ten Sports brand, to Sony Pictures Networks India for $385 million.
It then acquired 49% stake in Anil Ambani-owned Reliance Broadcast Network’s radio business Big FM
ZEE has also acquired the remaining 26% stake in its 74% subsidiary Zee Turner, for Rs 2,60,000.
Source: Economic Times