Disney May Increase Stake In UTV: Report
By Nikhil Pahwa - Wed 07 Nov 2007 11:24 PM PST
CNBC-TV18 reports that Disney (NYSE: DIS) is on the lookout for acquisitions in India, and it’s believed that they are planning to increase their stake in UTV. Disney currently owns 14.85 percent in UTV, which they had picked up for Rs. 65 crore (around $14 million at that time). Disney had also bought Hungama TV from UTV for $30.5 million. Currently, promoters including Ronnie Screwvala own 30.6 percent stake in UTV, of which 17 percent is locked. Screwvala has said that they’re talking to multiple strategic and financial investors, but declined to comment otherwise.
Since then, UTV has picked up controlling stakes in gaming companies Indiagames (51 percent) and UK based Ignition Entertainment (71 percent) for a total of $30 million. They’ve also launched new TV channels, and have plans to launch more. So UTVs valuations would have increased. On the stock markets, UTV is up around 3.86 percent today, in a market that is down around a percent.
