iWorld
Indian digital industry to be worth Rs 20k cr by ’20: EY report
MUMBAI: The Indian digital sector is anticipated to cross Rs 20,000 crore by 2020 which includes OTT and digital advertising. The industry at present is worth Rs 8, 490 crore.
The industry includes four key areas of digital revenues — OTT and digital advertising, music OTT subscription, video OTT subscription, and gaming (in-app and paid).
Indian digital media market offers a unique opportunity as mobile penetration TV subscription services and traditional internet is much below the world average, according to an EY report.
The digital industry at present contributes around 14 per cent of the ad spend in India. However, by 2019, it is anticipated to be around a quarter of the total ad expenditure.
According to the report which states that the sector is prepared to see the entrance of new internet users and the net-using population likely to reach around 746 million by 2020, a large number of consumers are expected to start using digital platforms.
According to EY estimates, smartphone penetration is likely to be up to 59 per cent by 2020 from 31 per cent in 2015 and digital ad spend is scheduled to be Rs 185 billion by 2020.
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.
