Zee in final leg of negotiations to buy 9X Media

Indian media conglomerate Zee Entertainment Enterprises is in advanced talks to buy 9X Media, which owns a clutch of Hindi and regional music channels, and the deal could be announced this month, said two highly placed sources with direct knowledge of the development.

ET first reported on April 20 that Zee is interested in acquiring 9X Media, currently owned by private equity fund New Silk Route (NSR). “Zee and NSR have almost agreed on the deal and some small details have to be chalked out.

The deal could be in the range of Rs 180-200 crore,” one of the persons quoted earlier told ET. Analysts feel that acquisition of 9X Media will make strategic sense for Zee, which is investing in films and music business and has radio business following the group’s acquisition of 49% in Big FM.

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 negotiations, sources said. ET could not independently verify whether these tax liabilities have been resolved since.

For NSR, which owns close to 80% stake in 9x Media, it is about cutting losses. The PE firm has been on the lookout for a buyer since 2013.

“From time to time we keep looking at opportunities as part of our ongoing business development. With regards to the same we have had certain exploratory discussions with 9X Media and its shareholders; however, no deal has been reached as yet. Needless to say, we shall inform the exchanges immediately if our talks fructify into any definitive deal,” said a Zee spokesperson responding to ET’s query.