iWorld
Times Internet buys MX Player for $200 million
MUMBAI: Taking another step towards getting on over-the-top (OTT) bandwagon, Times Internet has acquired a majority stake in Seoul-based MX Player in an all-cash deal worth $200 million, according to a report by The Ken. With this investment, Times Internet will be able to launch its OTT video service, which is expected to make a debut in the next few months.
MX Player is among the very few Android video player applications that support multi-core decoding. The player is very popular in India, Bangladesh, Pakistan, Sri Lanka and Iran among other countries.
Times Internet is currently testing its OTT app on a different version of MX Player, MX Player Online 2018 (beta). All the operations of the OTT app will be headed by Karan Bedi, the former COO of Eros. In 2015, the company launched Box TV in its very first attempt to enter the OTT space. However, the platform was shut down later in the year.
It is believed that, from $340 million in 2017, India’s online video industry is going to touch $1.6 million in revenue by 2022. Since a couple of years, a lot of major startups have taken a slide in video streaming industry.
As per the mobile insights and data company AppAnnie, MX Player has been downloaded by 63.6 million Indian users on their Android smartphones so far. This includes 80 per cent low-end smartphones and 20 per cent high-end handsets.
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.
