Zee Entertainment acquires 100 per cent stake in 9XM and INX music
Nidhi Jani / 09 Oct 2017
The acquisition is in line with the company’s strategy to cater to a diverse audience by offering targeted products. Besides significantly expanding its Hindi music portfolio, it gives ZEEL to access to the regional music genre.
Zee Entertainment Enterprises Limited (ZEEL) announced that it has acquired 100 per cent equity stake in two media entities i.e. Media Private Limited (9XM) and INX Music Private Limited (INX) from their existing shareholders at an aggregate cash consideration of Rs.160 crores.
The company has also bought 26% equity stake in Zee Turner Limited (74 per cent subsidiary of the company) for Rs. 2,60,000, the company said in a filing to the bourses on 6th October.
9X Media Private Limited, incorporated in 2006, is engaged in the business of broadcasting of five music channels.
INX Music Private Limited, incorporated on March 15, 2007, is 70.85 per cent subsidiary of 9XM and engaged in the business of broadcasting ‘9X Tashan’ (a Punjabi music channel) under its wholly-owned subsidiary Paul Entertainment Private Limited.
9XM was having total revenue of Rs. 135.02 crore and EBITDA loss of Rs. 17.74 crore in FY17. Whereas, INX Music Private Limited was having total revenue of Rs. 23.37 crore and EBITDA of Rs. 6.12 crore in FY17.
On the accomplishment of acquisition, these channels will be added to ZEEL’s current portfolio of 33 channels. The acquisition is in line with the company’s strategy to cater to a diverse audience by offering targeted products. Besides significantly expanding its Hindi music portfolio, it gives ZEEL to access to the regional music genre. It also increases its regional footprint with a foray into the Punjabi market.
Reacting to the news, the stock opened at Rs. 533, almost 2 per cent higher than its Friday’s closing of Rs. 522.8. At 10:30, the stock was trading at Rs. 527.65 on the BSE.
ZEEL is one of India’s leading television media and entertainment companies with 1 billion viewership in 171 countries.
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