• Zee Telefilms taking controlling stake ETC Networks?

    Submitted by ITV Production on Feb 18, 2002

    It came as a bolt out of the blue. Zee Telefilms and ETC Networks this morning informed the Bombay Stock Exchange that they have signed a memorandum of understanding to buy out the major chunk of the promoters‘ - Yogesh Radhakrishnan, Yogesh Shah and Jagjit Singh Kohli - stake. The amount: Rs 178.40 million, for 5.66 million equity shares, which represents 48.38 per cent of the issued and paid up share capital of ETC.
    At this level the pricing per share works out to around Rs 31 per share. The ETC share closed at Rs 34.50 on Friday on the BSE.

    ETC Networks, runs the ETC Punjabi and the ETC music Channels and the company‘s promoters view the arrangement as a strategic investment by Zee Telefilms.

    Subject to the necessary corporate and regulatory approvals, Zee and ETC informed the BSE that the former also intends to subscribe to additional ETC equity shares of a total value of Rs 70 million at a price to be determined by the market regulator Securities and Exchange Board of India ( SEBI) guidelines on a preferential basis.

    ETC Networks informed the BSE that its board will meet on 25 February to consider, inter alia, the MoU and offer of Equity Shares on Preferential basis.

    Meanwhile, a press release issued by ETC says both the companies are currently seeking regulatory approvals. Zee will be making an open offer in accordance with Sebi guidelines.

    Zee is also planning to acquire additional stake in ETC through preferential allotment. On completion of both the transactions, Zee is going to be the majority shareholder in ETC with approximately 56 per cent stake.

    Deal Size: Approximately Rs. 250 millions
    Price:
    Approximately Rs 180 mn for purchase of shares from promoters. Approximately Rs. 70mn for preferential allotment.
    Financing: in Cash
    Benefits to ETC:
    Leveraging on common sales and marketing opportunities both in India and overseas.
    Instead of being a standalone Broadcaster, ETC would be a part of a strong, 17 channel, Zee Turner bouquet.
    Common apparatus for negotiations with music and movie industry.
    Zee will provide its global platform to ETC for carrying the exclusive Live broadcast of Gurbani from Golden Temple, Amritsar through its overseas channels
    Zee Records will help ETC publish the Gurbani in both audio and video medium.
    Improvement in operational performance through better network synergies and reduction of overheads.
    Benefits to Zee:
    Undisputed market leadership in Music and Punjabi segments.
    Access to ETC‘s library of film‘s rights (Zee Cinema already has rights to 3,000 movie titles.)
    Additional pay revenues by making both the channels pay as part of the Zee Turner bouquet of 17 channels.
    Exploiting synergies between Zee Records and ETC Music, including exclusive rights to publish audio and DVDs of Golden Temple Gurbani.

    ETC has been advised by SSKI Corporate Finance Limited on this transaction.

    Commenting on the announcement Jagjit Singh Kohli, promoter and managing director, ETC Networks Ltd. said: "ETC brands have been nurtured to bring it to a leading position both in music and Punjabi segment. As part of the Zee Network, we will have tremendous opportunities to build synergies. Zee‘s international presence provides ETC a window to global audiences, which hitherto was not available."

    Sandeep Goyal, Group Broadcasting CEO of Zee Telefilms said today: "This strategic acquisition is another step in Zee‘s plan to achieve world leadership in key content segments serving the South Asian diaspora. It puts us in an extremely competitive position in the Music and Punjabi segments and is a foundation for building more value-creation opportunities.

    Management : The day-to-day operations of ETC will continue to be managed by the existing management team headed by Jagjit Singh Kohli. The management team consisting of all three executive directors will continue with the day-to-day operations of the company.

    Synergies : As a result of this transaction, the companies believe there will be improved content offerings, which will drive viewership and subscriber fees. Zee will bring its strength in sales and marketing to the Punjabi and music channels and provide a global platform for ETC content, especially for the Gurbani rights.

    Time it will take for Zee to complete transaction : Since Zee intends to acquire more than 15 per cent shareholding in ETC, Zee will be making an open offer to all shareholders of ETC in accordance with Sebi guidelines. The entire process is expected to be complete in approximately three months after taking all regulatory approvals.

  • Nimbus puts film production plans in overdrive

    Submitted by ITV Production on Feb 18, 2002

    Motion pictures seem to be the only new Nimbus venture that has taken off with a measure of success in the last couple of years.
    While plans to launch TV channels and portals have been stuck for various reasons, movies may well be the next ace up the company‘s sleeve as it unleashes six Hindi, regional and international film productions in the next two years.

    The company reportedly sunk in approximately Rs 79 million in the motion picture business as in initial investment.

    The Sanjay Dutt starrer Sarhad Paar, announced in late 1999, is finally taking shape. To be launched on 20 February, the film is to be directed by Raman Kumar and is co-scripted by Akash Khurana, Nimbus chief operating officer, movies and music.

    According to Khurana, Nimbus Motion Pictures will encompass multi-genre, multi-budget and multi-language movies. As with its television content, which Nimbus produces in eight Indian languages, the movie division too has adopted a portfolio approach with films being made in six different languages.

    The company has firmed up plans for six Hindi and regional language films to be released within two years. Also on the cards is an international production, an English film that will boast a foreign crew and cast. To be launched by September 2002, it will be an erotic thriller and is to be shot entirely in Goa. Khurana says Nimbus is tying up with a major production house in the US for this venture, which is slated as an independent film and will not be shot in studio format.

    The motion picture division that was activated in early 2000 with the launch of a Marathi film, Ek Hoti Waadi, is looking towards an annual turnover of Rs 200 million. Nimbus, says Khurana, is also planning to enter the telefilm arena, but is waiting for "the economic climate to improve, and projects get more affordable for channels."

    Even as Sarhad Paar takes shape, a Telugu film to be directed by Suresh Krishnan will be kicked off by July 2002. Also in the pipeline are a Bengali and an Oriya film, which will be launched later this year.

    Ek Hoti Waadi, the small budget Marathi film that marked Nimbus‘ entry into film production, was released in Pune on 8 February and will be released later this month in suburban Mumbai. The film is slated for release in the state interiors from April onwards. The film, which Khurana claims has received a good response in Pune, bagged six awards (picture, actor, actress, story, music and lyrics) at the recently held Alpha Gaurav Puraskar in Mumbai.

    In late 1999 when the company declared its intention to go public, it had issued a propectus in which Nimbus chairman Harish Thawani said that the company had taken a policy decision that not more than five per cent of the company‘s investible funds at any time will have an exposure in the motion picture content industry.

    The company had also planned on launching a community portal, a movie related vortal, entering the FM radio fray and launching two TV channels, one of them to be christened showbiz TV, apart from starting a motion picture division. The others are yet to take off, however.

  • Sony says pitching to get India rights for Cricket World Cup

    Looks like the common assumption that ESPN Star Sports will be airing the India telecast of next year's Cricket World

  • TV 18 opens at a whopping 1000 per cent premium; to launch portal on Budget Day

    TV 18 listed at a massive 1,000 per cent premium on the Bombay Stock Exchange (BSE) today.

  • Sony says pitching to get India rights for Cricket World Cup

    Submitted by ITV Production on Feb 16, 2002

    Looks like the common assumption that ESPN Star Sports will be airing the India telecast of next year‘s Cricket World Cup in South Africa may be proved presumptuous. And Sony Entertainment Television‘s MAX channel may yet have some cricket worth showcasing.

    SET yesterday issued a release that it was in advanced negotiations with Global Cricket Corporation (GCC) & World Sport Nimbus (WSN) for acquiring the Indian television rights to broadcast a six-year package of ICC (International Cricket Council) cricket championships including the ICC Cricket World Cups in 2003 and 2007.

    "GCC/WSN and SET are confident they will successfully conclude this transaction and hope to be in a position to make a formal announcement next month," the release says.

    It may be recalled that the worldwide rights for television, Internet and sponsorship for a seven year period that includes the 2003 and 2007 cricket World Cups was won in mid-2000 by World Sports Group, along with Rupert Murdoch‘s News Corp through a joint bid. The combine won the rights for a minimum guarantee of $550 million after a fierce bidding war with Subhash Chandra‘s Zee Telefilms.

    The GCC is a joint venture between WSG and News Corp and is managing the commercial programme for the ICC Cricket World Cup 2003.

    The main question of course is what sum will SET chief executive Kunal Dasgupta be willing to pay to secure the rights.

  • Hallmark Channel US claims lead in 'time spent viewing' growth

    Submitted by ITV Production on Feb 15, 2002

    The Hallmark channel may be struggling to find an audience in India but in America the story is different. Hallmark Channel has once again outranked all ad-supported cable and broadcast networks in time spent viewing growth in prime time, an official release states.

    The channel has positioned itself as the network consumers are turning to for high-quality programming that is engaging, compelling and relevant. The release states that during the fourth quarter of last year (October, November, December 2002) Hallmark Channel US increased its "time spent viewing" (94 minutes vs. 74 minutes) representing a 27 per cent increase over its fourth quarter 2000 results. The network was followed by the Lifetime and TVLand networks.

    Earlier, Hallmark claimed to have ranked number one with a 35 per cent increase in "time spent viewing" growth in third quarter 2001 (third quarter 2001 vs. third quarter 2000).

    The figures were calculated by Nielsen Total Activity Report (fourth quarter 2001 vs. fourth quarter 2000, 10/1-12/30/01 vs. 10/2-12/31/00).

    Hallmark Channel is a 24-hour television network that provides entertainment programming to a national audience of nearly 44 million subscribers, the release states. The programme service is distributed through 1,700 cable systems, DirecTV (Channel 312) and EchoStar (DISH Channel 185) direct-to-home satellite services and C-Band dish owners across America. Hallmark claims that its combined channels reach 83 million subscribers globally.

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