iWorld
Kumar Mangalam Birla charges into content creation, hires TV vet Sameer Nair
MUMBAI: Sameer “Sam” Nair has made it a habit to go where many a man has gone before and failed. The only difference: he has made what he has been charged with a success.
Now, the former Star TV COO and former Balaji Telefilms group CEO, is headed to the $43 billion Aditya Birla group to revive chairman Kumar Mangalam Birla’s long harboured ambitions to chew away a piece of the fast growing Indian entertainment business through his company Applause Entertainment.
Earlier, attempts by Birla under Applause were abject financial failures, though the company churned out films such as the Amitabh Bachchan-starrer Black and Dev.
The reason: Birla did not have a strong platform 10 years ago, and attempts to create for cinema and television were challenging. However, with the upcoming Idea-Vodafone giant (around 400 million subs when the two merge by 2018) under his belt, he won’t be facing that challenge in his fresh attempt to build the entertainment side of his business. Additionally, he has Sam who has a track record of turning around struggling entertainment companies. Finally, global platforms such as Amazon, Netflix and Hotstar will be another window of opportunity for revived entity.
Thus, Kumar Mangalam has kept aside an initial investment war chest of Rs 2-3 billion this time around.
Sam and Applause will be focused on creating premium drama series, in multiple genres and languages (Tamil, Hindi and Telugu) in the shorter format with seasons to feed the new emerging audience which is currently gorging on shows such as House of Cards and Game of Thrones. The idea, according to Sam is to work with content producers in the established studio structure to roll out the first batch of shows rather quickly in the next six months. Around 20-30 series across romance, drama, crime and thriller genres will be delivered over the next 18 months.
Dropping data prices on mobile and increased consumption of video while on the move are factors which will fuel the explosion in content in India going forward, points out Sam. Content, he says, has to play catch-up with technology.
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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.
