Wednesday, August 06, 2008

Talk to me......says PE to Indian media

PE firms have discovered a new love in the form of the Indian media & entertainment industry. Will this affair last or will it go sour, wonders pallavi srivastava

Scrutinise the shareholding pattern of Peter Mukreaja’s dreamchild INX media and one can’t help but bite the tongue. A good 55% stake in the company is held by firms like Temasek Holdings, New Silk Route Partners, New Vernon Private Equity Fund, Employee sweat equity, et al. A cursory glance at NDTV Networks’ shareholding pattern and you find companies like Lehman Brothers, Goldman Sachs, CSFB and eight others jointly holding as much as 24% stake in it. Ashmore Investment Management owns 49% stake in Digicable Network. Then again, what’s common among companies like B.A.G. Infotainment, Times Innovative Media, Hathway cable, UFO Moviez and India TV, besides the fact that they operate in the media & entertainment space. They all have private equity (PE) firms’ expressing their newly found love for them, by buying stakes in these companies.

The Indian Media and Entertainment (M&E) sector has never been a hot cake among PE investors. But of late (especially over the last one year) PE firms are showing great interest in the sector. Blackstone’s 26% stake in Ushodaya Enterprise for $146 million, Future Capital-promoted Indivision Capital’s 4.9% stake in Dish TV for $58.14 million, Chrys Capital’s 27% stake in Hathway cable for a whopping $120 million, Shyam Equities’ 20% stake in Independent News Service (holding company of India TV) for $25 million are just a few examples.

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Source :
IIPM Editorial, 2008
An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

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