iWorld
Netflix’s Reed Hastings’ compliment pleases Hotstar
MUMBAI: When the world’s most successful video on demand player Netflix acknowledges you as a rival to watch out for, you obviously are going to be fairly kicked about it. That’s the case at Star India-owned Hotstar.
Sources reveal that the team – led by Ajit Mohan – inside the domestically originating service is pretty happy about the comment that Netflix CEO Reed Hastings made last week in an interaction with the media.
Said he: “Here in India, consumers are fortunate because there’s a great battle with Hotstar, Amazon, YouTube and Netflix, and maybe others, all competing for consumer’s time. When you use your mobile phone, laptop, smart TV, there are many services to go to. You can do many things. We’re one of the choices. What’s unique about Netflix is that we have got these international originals, combined with local talent.”
Hotstar India claims to have around 60 million subscribers in India and is gung-ho about going global. The plan is to target Indians globally and possible other international viewers too: the number is anywhere between 25-50 million worldwide.
The other two players – Amazon and YouTube – are backed by global super heavyweights, while Hotstar is backed by Star India, which is part of Twenty First Century Corp. The latter is a midget compared to both and Google and Amazon in terms of valuation and market capitalisation.
Says a media commentator: “Hotstar is targeting a billion minutes a day of watch time. Netflix does multiples of that in a day worldwide. Hence, to be named as a competitor to be watched out for is a stripe on the Hotstar team’s shoulders. As compared to Netflix, Hotstar has a smorgasbord of content offerings which are very local – right from soaps to series to films, primarily in house content created for its television channels. Or there’s the movies and the international shows from good libraries. Of course, in recent times, it has been curating original Indian content. And then, there is the IPL which drives the nation crazy. It’s interesting to see how team Netflix will actually do battle with it in the marketplace as it seeks to scale up the numbers in India.”
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
