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US media giant Disney announced it will take a controlling interest in India’s leading television producer, UTV, and delist the Indian media and entertainment group.
“Increasing our brand presence and reach in key international markets is a cornerstone of our growth strategy,” Disney International chairman Andy Bird said in a statement.
“This acquisition expands our footprint significantly and allows us to more effectively build, monetise and brand multi-platform franchises, and deliver a rich library of content to the world’s second largest population,” he added.
UTV, which has interests from film and television to gaming and animation, has already acquired public shareholders’ approval to delist the company’s shares from Indian stock exchanges, after buying out the respective stakes.
In July, it announced that Disney was seeking a buyout of its shares for about $454 million, however, Disney did not disclose the financial terms of the deal.
Until now, Disney India has held 50.44 per cent of UTV, and its chief executive Ronnie Screwvala and three other promoters a 19.82 per cent stake.
Disney has been working to get a foothold for a number of years in India, which is one of the world’s fastest-growing media and entertainment markets.
Disney first began operations in India in 2004 as Hollywood began looking to emerging markets such as India, China and Russia to boost growth.
It has also moved into India’s expanding cable and satellite television market through its children’s outlets.
