Tuesday, February 19, 2008

UTV Expands Alliance With Walt Disney

Mumbai: Hollywood media giant Walt Disney Company is all set to put in Rs 13.14 billion in two UTV group firms. An agreement has recently been reached between the two groups under which Disney, through its subsidiary The Walt Disney Company (Southeast-Asia) Pvt Ltd will invest Rs 13.14 billion in UTV Software Communications Ltd (USCL) and UTV Global Broadcasting Ltd (UGBL).

UGBL is the parent company for its two wholly owned subsidiaries, Genx Entertainment Ltd and UTV Entertainment Television Ltd. Genx has already launched successfully two youth entertainment channels through the Bindass brand while the latter just launched The World Movies channel and is about to start UTV Hindi Movies channel. The company would also keep its shareholders informed by a public announcement. The deal and the open offer of Rs 1.19 billion is subject to regulatory and shareholder approvals. The agreement, once sealed, will help Disney increase its stake in UTV from 13.7 per cent to 32.1 per cent.

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