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Star India to pump $50 million into Hotstar this year
MUMBAI: Speaking during an analyst call focusing on 21st Century Fox’s investments in India, James Murdoch has said that this year’s investment by Star India into its streaming service Hotstar would be $50 million.
“We’re very comfortable that we’ll hit our $500 million EBITDA target at Star TV,” said James Murdoch. “We had decided, however, from the strong quarter in the year to continue to increase our investment in Hotstar, which for the year will be about $50 million.”
Murdoch noted that the sports business and the digital business are also growing fast. Hotstar exceeded 140 million users in April alone, he said. The India Premier League’s watch time on Hotstar has grown by 2.5 times as against last year and achieved 7 million live streams during one IPL game, the highest-ever for any streamed sports event anywhere in the world.
“In the Indian TV business, our entertainment channels achieved significant regional market share growth over the past year and two of the largest regions when launching the number one national free to air in the country, Star Bharat,” Murdoch added.
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.
