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Report: Reliance Entertainment To Place 5% With PE Firms; Valuation of $1.5 Billion?

By Nikhil Pahwa - Mon 24 Dec 2007 12:19 AM PST

Another day, another story in the Economic Times about Reliance Entertainment...again not corroborated. As per the report, ADA Group company Reliance Entertainment is looking to place 5 percent of its equity, at a valuation of close to Rs. 6000 crore (around $1.5 billion). The money will be used to fund the company’s plans in movie production (25-30 movies over 18 months), social networking, movie rental (500 shops). Just yesterday, there was news of Reliance Entertainment company Zapak planning to buy Sony (NYSE: SNE) Online Entertainment, though Sony denied it. The story may have been speculative, but if you see it in the context of the stake sale story today, one wonders if all of this is going to help bump up valuations. ET has since pulled the online version of the Zapak-SOE story, and people in the industry are raising questions about the credibility of both ET and Reliance Entertainment.

Posted in: Companies, ADAG, Reliance Entertainment, Venture Capital



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4 Responses:
  • From Hemang Tue 25 Dec 2007 10:26 PM

    Hey NIkhil maybe the talks failed, one never knows till its done, moreover if ADAG wants to buy SOE or similer co they are capable of doing so...I think its just matter of time. 

    read todays HT - main page ( how ADAG have created more value for small/medium investors)

    Bottomline - My money is on ADAG.....regardless !!

  • From Srinath Thu 27 Dec 2007 04:29 AM

    may be.. Hemang. But it may also be that ADAG is playing. After those BigAdda TVCs, & with investments like video rental stores.. my money is certainly NOT on ADAG smile

  • From MobStir Tue 01 Jan 2008 11:20 PM

    I love Reliance and the fact that it is able to get away with so much so often. from getting licenses, to being on the wrong side in politics, to audio tapes, to spectrum, to .....

    any other country and there would be an investigation and questions.. here we celebrate them. Just shows if you share your wealth in India anything is possible. I wonder how a simple man ended up having sons who own more than 50% of India’s biggest and most valuable business house…

    Id love to hear the story someday, without the years in between missing .. you know where there is once a rickshaw puller and 15 years later he was a billionaire..I am the kind who wants to hear about those 15 years and not just in one chapter but a chapter for each year (though I am sure there will be enuf masala to fill a book for each year and many bollywood movies).

    In the meanwhile, might as well make money and buy some reliance shares…

  • From Raag Vamdatt Fri 11 Apr 2008 08:07 AM

    I have always loved Reliance stocks… From Reliance Industries - the mothership - to its siblings - Reliance Communications and Reliance Money - all the companies are fantastic, and present a great opportunity for long term investors.

    The means might be questionable, but not everyone has the ability to make the most of the prevailing situations. If Reliance is able to do it, we might as well share the goodies....

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