News Broadcasting
Walt Disney to buy out Hungama TV, take 15% stake in UTV
MUMBAI: The Walt Disney Company today announced that it has entered into an agreement to wholly acquire Hungama TV and take a 14.9 per cent equity interest in media company UTV Software Communications Ltd, in each case subject to regulatory approval.
Disney has entered into an agreement to acquire 100 per cent of United Home Entertainment LTD (Hungama TV) at an enterprise valuation of $30.5 million and purchase equity stake of 14.9 per cent of expanded capital in UTV Software Communications LTD, at a consideration of $ 14 million. So, the total combined investment is $ 44.5 million.
The announcement confirms the news first put out by Indiantelevision.com that Disney would be buying into Hungama TV and picking up a small stake in UTV.
Hungama TV COO Zarina Mehta will be working closely with the Disney team for the next three months to ensure a smooth organisational and operational integration of Hungama TV into Disney’s portfolio of kids channels. Post that Mehta will be working with Disney as a consultant for a period of six months to a year.
Once final, the acquisition will firmly establish Disney’s ties in a rapidly growing media market where local content product is key. The combination of the three kids’ channels — Disney Channel, Toon Disney and Hungama TV — will establish Disney as a strong contender against the market leader Turner India (Cartoon Network and Pogo).
“India is a long term strategic priority for the Walt Disney company. The acquisition of Hungama TV and the investments in UTV will significantly advance our presence in India and allow us to develop a strategic relationship with one of the countries leading integrated media companies,” said Walt Disney International president Andy Bird.
“Not only will we be acquiring a great channel asset, we will also be able to participate in UTV’s diversified businesses and bring to UTV our global media and synergy expertise, including developing and distributing high quality family friendly content in nearly 200 countries worldwide and expanding related franchises across film, TV, music, merchandise, new media and live entertainment,” said Bird.
When queried on Disney’s plans to launch a theme park in India, Bird answered in the negative. “We are not looking at a theme park in India,” he said.
“TV is and will continue to be the major growth engine in building franchise affinity in India. Integrating Hungama TV in the Walt Disney Company’s existing India channel portfolio of Disney Channel and Toon Disney will allow Disney to fortify its already strong presence in India’s kids TV market,” said Disney Channel Worldwide president Rich Ross.
When queried about the integration process of Hungama TV into Disney, Walt Disney Television International (Asia Pacific) senior vice president and managing director Nicky Parkinson said, “At present we are not sure how the integration will take place. We are in the process of finding out a way to best talk to kids. We are not here to cannabalise the market place. India is a relatively nascent market but one which has phenomenal potential.”
“Hungama TV has proven its appeal to Indian children and families with compelling entertainment choices and has in a brief period built a strong management team and sucked out a leadership position in the competitive children’s TV environment. We are also delighted that Disney has chosen to make a strategic investment in UTV, which will augment our business in India and around the world,” said UTV group CEO Ronnie Screwvala.
Launched in September 2004, Hungama is a 24-hour Hindi-language entertainment cable channel for children and is currently in a close fight with Turner’s Pogo channel for the the number two position in the Indian kids space behind leader Cartoon Network. Hungama TV has a staff strength of 71.
Disney currently reaches over 107 million television homes in India through a programme block on Doordarshan and Disney Channel and Toon Disney/Jetix reached approximately 30 million homes on cable and satellite in India.
UTV has a diversified set of businesses, which includes television and film production and distribution, animation production, and other services.
News Broadcasting
Rajesh Sundaram joins NDTV Profit as senior editor, assignment
The 32-year newsroom veteran has launched channels on three continents and covered everything from 9/11 to South African television
MUMBAI: NDTV Profit has bolstered its newsroom with a hire who has done rather more than most. Rajesh Sundaram, a journalist with over three decades of editorial, managerial and consultative experience across India and international markets, joins as senior editor, assignment, tasked with sharpening the network’s newsgathering and real-time response.
Sundaram’s career reads like a tour of Indian media’s most formative moments. He began at Businessworld in 1994, moved to Zee News as bureau chief across Mumbai and Chennai, then joined NDTV in 2002 as part of its political bureau during a particularly febrile period in Indian politics. A stint as India correspondent for Al Jazeera International followed, where he covered key geopolitical developments and got his first serious taste of the global newsroom.
What sets Sundaram apart, however, is his serial channel-launching habit. At NewsX, he helped get the operation off the ground. At Headlines Today, part of the India Today Group, he served as editor. At News Nation, he helped launch the Hindi news channel and its digital ecosystem. He then crossed continents to lead the launch of ANN7 in South Africa as editor-in-chief, overseeing both television and digital. Back in India, he launched Tamil news channels News7 Tamil and Cauvery News, and later served as principal consultant for the launch of Marathi channel Lokshahi. Most recently, he helped build and lead the Press Trust of India’s video service and content studio, before stints consulting for Business Today and The Himalayan Times.
Rahul Kanwal, chief executive and editor-in-chief of NDTV, left little doubt about what Sundaram is expected to deliver. “The assignment desk is where a newsroom’s intent becomes action,” he said. “Rajesh brings a rare combination of field experience and leadership in building news operations at scale.”
Sundaram has reported from across India and the world, covering elections, civil conflicts, the aftermath of the 9/11 attacks and the 2008 US presidential election.
At NDTV Profit, he will lead the assignment desk, driving editorial coordination and real-time response across markets and breaking developments. For a business news network sharpening its focus on speed and multi-platform delivery, it has hired a man who has built newsrooms from scratch on three continents. The assignment desk is in good hands.
