The Rs 160 crore deal paves the way for the exit of New Silk Route and other shareholders
Leading global content company, Zee Entertainment Enterprises Ltd (Zeel) is set to acquire a 100 per cent stake in 9X Media Pvt Ltd and its subsidiaries in an all cash deal valued at Rs 160 crore. A definitive agreement has been entered into by ZEEL to acquire the entire stake currently held by New Silk Route and other shareholders, thereby paving way for their exit.
Punit Goenka, Managing Director and Chief Executive Officer of ZEEL, 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. 9X channels enjoy leading market shares in their respective segments and will benefit immensely from our network's strength to achieve higher growth potential and cost synergies. I am confident that these channels will make our entertainment bouquet even more compelling for the audience."
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). On completion of the acquisition, these channels will be added to ZEEL's current portfolio of 33 channels.
The acquisition, ZEEL said in a statement, is in line with the company's strategy to cater to diverse audiences by offering targeted products. Besides significantly expanding its Hindi music portfolio, it gives ZEEL access to the regional music genre. It also increases its regional footprint with foray into the Punjabi market.
"9X Media's bouquet of channels have established a strong viewership on the back of the unique brand identity created over the years. In addition to strengthening ZEEL's television bouquet, these channels will complement the music label and movie production businesses. 9X Media's popular Bollywood news portal, SpotboyE, will also be a part of the transaction. The company is confident of utilising network synergies to bring down the costs and significantly improve the profitability of these channels," ZEEL said in the statement.
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