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Walt Disney buys out UTV's Hungama

Staff Correspondent

MUMBAI: The Walt Disney Company has further strengthened its presence in the Indian media market by entering into an agreement to acquire Hungama TV, a leading Indian children's television channel, and taking an equity interest in media company UTV Software Communications Ltd.

It has entered into an agreement to acquire 100 per cent of UHE (Hungama TV) at an enterprise valuation of $30.5 million and purchase equity stake of 14.9 per cent of expanded capital in UTV Software Communications at a consideration of $14 million, making for a total combined investment of $44.5 million.

Hungama TV is a 24-hour entertainment channel for kids with localised content in Hindi. The holding company is United Home Entertainment (UHE), floated by UTV and UTV CEO and MD, Ronnie Screwvala. UTV Software Communications is an integrated media and entertainment company with a leadership position in TV, motion pictures and broadcasting.

Strategic relationship

"The acquisition of Hungama TV and the investment in UTV will significantly advance our presence in India and allow us to develop a strategic relationship with one of the country's leading integrated media companies,'' Andy Bird, President, Walt Disney International, said at a press conference media here on Tuesday. "The Walt Disney Company will be able to participate in UTV's diversified media businesses and bring to UTV Disney's global media and synergy expertise,'' said Mr. Bird.

Integrating Hungama TV into the Walt Disney Company's existing India channel portfolio of Disney Channel and Toon Disney/Jetix would allow the company to fortify its presence in India's children's television market."Disney Channel has identified a new audience segment of girls between age 10 and 14 and Toon Disney has been able to expand its reach in South India,"Rajat Jain, Managing Director, The Walt Disney Company (India), said.

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