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Tag: Reliance group

  • Brand IPL value takes its first tumble in six years: Report

    Brand IPL value takes its first tumble in six years: Report

    MUMBAI: So the pandemic did leave its mark – rather a financial dent – on Brand IPL, similar to that on other businesses and the overall economy. The value of the IPL ecosystem has fallen by 3.6 per cent to Rs 45,800 crore post-2020 season, according to a brand valuation report by Duff & Phelps. In 2019, the IPL commanded a brand value of Rs 47,500 crore, which had grown seven per cent over the previous year.

    The fall in brand value was largely due to Vivo pulling out of the title sponsorship deal, additional costs involved to create a secure bio-bubble environment etc. IPL 2020 matches were played behind closed doors, effectively impacting the in-stadia revenues, including gate receipts and food and beverages, the report said.The individual franchisees have also witnessed a reduction in their brand values over the last year, Duff & Phelps said on Wednesday releasing the seventh edition of its valuation report on IPL. This was largely attributed to reduced franchisee-related sponsorship revenue, loss of gate receipts, reduced food and beverage (F&B) revenue, and certain teams’ on-field performances and off-the-field issues.

    Though one of the key franchises, the Reliance Group-owned Mumbai Indians has retained the top spot in the brand rankings for the fifth consecutive year, at a brand value of Rs 761.0 crore, it is nevertheless down 5.9 per cent from 2019. Chennai Super Kings saw its brand value fall the most, by 16.5 per cent year-on-year, to Rs 611 crore in 2020, while that of Delhi Capitals’ dropped the least, by one per cent to Rs 370 crore, the report said.

     “The standalone franchisee brands have seen their brand values decrease as the pre-Covid-19 sponsorship deals were reduced by 15-20 per cent before the start of the tournament, predominantly because there were no ‘meet and greet’ events with players; and there were no free tickets in stadiums,” Duff & Phelps India external advisor Santosh N was quoted as saying in the report.

    However, with people forced to spend time at home, there was an increase in IPL television viewership making the 2020 edition a huge success for broadcasters as it broke viewership and advertising revenue records. "Television ratings skyrocketed and advertisers tapped into this opportunity to scale up their brand image. Despite the challenging year, this momentum is indicative of how strong the IPL brand has become," observed Santosh.

    With the economy opening and virus infections decreasing, sponsorship deals are expected to be back to the pre-pandemic levels. Also, an increase in the number of teams in 2022 and the renewal of media rights in 2023 will enhance the IPL ecosystem value in the future, he added.

    Furthermore, with Vivo back as the title sponsor of the T20 league this year, things are already beginning to look up. In 2020, IPL 13 had seen lower sponsorship revenue compared to 2019 as the IPL had signed up Dream 11 as title sponsor for Rs 222 crore for one season, as against the Rs 440 crore per year they had been getting from Vivo.

    The list of sponsors who want to be associated with the Indian Premier League is only growing season after season, and the fourteenth season of the tournament promises to be no different.

  • NDTV, Reliance’s Rafale case to be heard on 22 November

    NDTV, Reliance’s Rafale case to be heard on 22 November

    MUMBAI: NDTV has challenged the jurisdiction of the Ahmedabad court where Anil Ambani’s Reliance Group sued the news broadcaster for Rs 10,000 crores over the Rafale fighter jet deal and the next hearing will be on 22 November 2018. The first hearing was on 26 October. The lawsuit is filed against NDTV's weekly show, Truth vs Hype, which aired on 29 September.

    According to NDTV, “The role of Reliance appeared to have been questioned by none other than Francois Hollande, who was the president of France when the deal was struck. The NDTV show reported all sides of the story including Dassault's denial that it had been under any pressure to select Reliance. The panellists, in a balanced discussion, examined whether issues like Reliance's vast debt and record in defence manufacturing made it a suitable choice for Dassault in India.”

    NDTV Group CEO Suparna Singh tweeted on 26 October, “NDTV challenges jurisdiction of Ahmedabad court where Anil Ambani’s Reliance group sued us for Rs 10,000 crores over our Rafale deal coverage, next hearing on Nov 22.”

    Anil Ambani’s Reliance Group has filed a defamation suit of Rs 7,000 crore against founder and editor of ‘The Citizen’, Seema Mustafa, for its reportage on the defence deal and Rs 5,000 crore against National Herald in September, saying that one of its published articles on the Rafale deal was “libellous and derogatory”.

    Also, the Enforcement Directorate (ED) had issued a show cause notice to NDTV in connection with a case of forex violation it is probing against the media company on 17 October 2018. The notice has been issued for violations of the Foreign Exchange Management Act (FEMA) to the tune of Rs 4,000 crore.

  • Anil Ambani’s Reliance sues NDTV for Rs 10,000 cr

    Anil Ambani’s Reliance sues NDTV for Rs 10,000 cr

    MUMBAI: NDTV has been sued for Rs 10,000 crore by Anil Ambani's Reliance Group in an Ahmedabad court for its reportage on the Rafale fighter jet deal. The lawsuit is filed against NDTV's weekly show, Truth vs Hype, which aired on 29 September.

    The hearing has been listed for 26 October. NDTV Group CEO Suparna Singh tweeted on 18 October, “We will fight this brazen attempt to harassment and intimidation.”

    NDTV also mentioned that the top executives of Reliance ignored repeated, multiple and written requests to appear on the show or comment on what is being widely discussed not just in India but in France as well – whether Anil Ambani's Reliance was transparently chosen as the partner for Dassault in a deal that saw India buying 36 fighter jets.

    According to NDTV, “As the Rafale deal has become a larger news story in India, the Reliance group has been on a notice-serving spree; to sue a news company for Rs 10,000 crore in a court in Gujarat on false and frivolous charges, ignoring facts that are widely reported everywhere and not just by NDTV, can only be interpreted as an unsophisticated warning to the media to stop doing its job.”

    Also, the Enforcement Directorate (ED) has issued a show cause notice to NDTV in connection with a case of forex violation it is probing against the media company on Wednesday. The notice has been issued for violations of the Foreign Exchange Management Act (FEMA) to the tune of Rs 4,000 crore.

    NDTV rejected any allegations of violating FEMA regulations. NDTV said that it is being targeted for its fair and independent journalism and that its persecution is intended to signal to other media that unless they fall in line, they will face similar consequences.

  • APOS 2016: Reliance Industries’ Adil Zainulbhai & the Jio launch

    APOS 2016: Reliance Industries’ Adil Zainulbhai & the Jio launch

    BALI: For all those who have been speculating about the commercial launch dates of Reliance Industries Jio services – whether wireless broadband and 4G or wired broadband – in India, here’s  the final word from the Network 18 Media & Investments chairman and Reliance Industries independent director Adil Zainulbhai.

    Speaking at APOS2016 in Bali, Zainulbhai admitted even he does not know it. “There is probably one person who knows when the launch date is: that is the chairman. And the chairman of the board will decide one day when it will launch and I don’t think even he knows today what that date is. He will let us know when that is to happen.”

    Zainulbhai stated that Jio was very close to being ready in terms of infrastructure for broadband wireless. He pointed out that the company was currently looking at what all was required from the marketing and processes perspectives.

    He revealed that close to 250,000 km fibre has been laid for wired broadband. These services will follow only after the launch of wireless broadband.

    “In the next 18-24 months, a large proportion of the high net worth homes in India will have the potential to have a fibre connection. And then they will have to choose when they want it or not,” he expounded. “Today an average data user on wireless broadband uses 0.18 GB a month. We have 500,000 users on our network testing it –they are using on an average 20GB. This is going to be a disruption. We don’t know how things will roll out when you give people an opportunity to consume as much as they want for a very reasonable price.”

    Zainulbhai stated the Reliance group has never looked at any project business case wise. “The thought has always been how can we disrupt the existing scenario, improve lives of people and  in the process make money,” he disclosed.  “Right from the founder Dhirubhai Ambani’s time. And this has worked well for it with every project paying off.”

    He directed the attendees attention to benefits like health and education which will be the other services the group will provide under Jio. “There’s a shortage of doctors and teachers in India. We want to help plug that gap through our broadband digital infrastructure. Entertainment services will pay for the laying of the fibre. The biggest change will happen in other fields.”

  • APOS 2016: Reliance Industries’ Adil Zainulbhai & the Jio launch

    APOS 2016: Reliance Industries’ Adil Zainulbhai & the Jio launch

    BALI: For all those who have been speculating about the commercial launch dates of Reliance Industries Jio services – whether wireless broadband and 4G or wired broadband – in India, here’s  the final word from the Network 18 Media & Investments chairman and Reliance Industries independent director Adil Zainulbhai.

    Speaking at APOS2016 in Bali, Zainulbhai admitted even he does not know it. “There is probably one person who knows when the launch date is: that is the chairman. And the chairman of the board will decide one day when it will launch and I don’t think even he knows today what that date is. He will let us know when that is to happen.”

    Zainulbhai stated that Jio was very close to being ready in terms of infrastructure for broadband wireless. He pointed out that the company was currently looking at what all was required from the marketing and processes perspectives.

    He revealed that close to 250,000 km fibre has been laid for wired broadband. These services will follow only after the launch of wireless broadband.

    “In the next 18-24 months, a large proportion of the high net worth homes in India will have the potential to have a fibre connection. And then they will have to choose when they want it or not,” he expounded. “Today an average data user on wireless broadband uses 0.18 GB a month. We have 500,000 users on our network testing it –they are using on an average 20GB. This is going to be a disruption. We don’t know how things will roll out when you give people an opportunity to consume as much as they want for a very reasonable price.”

    Zainulbhai stated the Reliance group has never looked at any project business case wise. “The thought has always been how can we disrupt the existing scenario, improve lives of people and  in the process make money,” he disclosed.  “Right from the founder Dhirubhai Ambani’s time. And this has worked well for it with every project paying off.”

    He directed the attendees attention to benefits like health and education which will be the other services the group will provide under Jio. “There’s a shortage of doctors and teachers in India. We want to help plug that gap through our broadband digital infrastructure. Entertainment services will pay for the laying of the fibre. The biggest change will happen in other fields.”

  • BloombergQuint: Business reporting the cross platform way

    BloombergQuint: Business reporting the cross platform way

    MUMBAI: The old TV news warhorse is back. After selling his Network18 business to Reliance’s Mukesh Ambani a couple of years ago, Raghav Bahl burst back on to the scene with a new digital venture Quintillion Media. Now the firm has got into bed with the global business information power house Bloomberg Media. The result of the union will take birth in the next three months as BloombergQuint India which will deliver business and financial news over traditional broadcast, digital and live events in the subcontinent.

    Bahl says journalism will be at the core of BloombergQuint India. Bloomberg recently dissolved its partnership in a company that included Reliance, UTV’s Ronnie Screwvala and had been operational in India as a TV channel for about eight years as UTV Bloomberg.

    Bahl believes that the entry of BloombergQuint in the hypercompetitive news space heralds challenges for both the partners, but they are up for the task. Says he: “It is a great sense of dejavu for us. We created this space which is now very powerful. We have created brands that are powerful. And now we are getting back in this space with a new offering and a new brand. There is a need for disruption and that’s where BloombergQuint stands which you will see with the service being rolled out. We have money…. and we are hoping to get good advertisers on board.”

    Bloomberg Media International managing director Parry Ravindranath explains that the Quintillion marks a first for his company.

    “We have been in India for around 20 years, “ he says. “But this is the first Bloomberg cross platform partnership. We continue to break new ground in news and deliver the best content in Asia’s fastest growing market.”

    And the decision to partner with Raghav was a natural one. “This is a second coming for Raghav and he has pioneered the business news genre in broadcast and digital in India. And he was my first boss,” adds Ravindranath with a smile.

    Adds his boss in the US Bloomberg Media CEO Justin Smith: ” It was clear when we met Raghav that we shared a common vision to create India’s premier digitally-led multi-platform business media company. And that met with our global vision. Currently, almost half of our digital traffic comes from outside the US and this figure continues to grow. Partnering with Quintillion Media in India is a game-changer for the country’s digital and broadcast media industries, and for Bloomberg Media globally as we take our investment to an exciting new phase.”

    “As the fastest growing major economy in the world, India is one of the most important stories we are covering in Asia. I’m glad we are partnering with Raghav and his team who have deep experience reporting on India for the past two decades,” chips in Bloomberg News APAC executive editor David Merritt.

    With the joint venture signed just a few days back, a gaggle of news professionals are being hired and it looks like its homecoming for them. The company has roped in former CNBC TV18 CEO Anil Uniyal and former CNBC-TV18 executive editor Menaka Doshi to serve as BloombergQuint’s CEO and managing editor respectively. Harsha Subramaniam, a Bloomberg executive producer will oversee the partnership for Bloomberg across platforms.

    “We have a set of robust colleagues on board joined by solid associates which we had in Network 18. I am delighted to have them with us. We also have Ritu Kapur with us and we are very confident about our product. They also bring a fantastic news structure. We are very proud that a global company has partnered with us,” says Bahl.

    It might be recalled that back in 2014, Bahl left a void in his own Network 18 group which was taken over by the Reliance Group. After Bahl moved out, the group also witnessed resignations from Sai Kumar, Ajay Chacko, RDS Bawa, Rajdeep Sardesai and Sagarika Ghose. Wishing Bahl luck for his new joint venture, India Today Group consulting editor Rajdeep Sardesai said, “I wish him very well. I have had enjoyable years with him and have shared an excellent relationship with Raghav.”

    “There is enormous potential in the English news genre and it’s only expanding. For now, they will have to follow the ad driven revenue model, but in the long run, every channel will love to follow a subscription revenue model,” says media analyst and IIM Calcutta professor Chandradeep (CD) Mitra. “A new channel can be successful if it has compelling content, great market presence and on-ground action. As advertisers are reluctant about going on new platforms, the channel can either give attractive rates or start with one well-known brand on board. Creating an impression helps a channel irrespective of whether it is earning profits or incurring losses.”

    The two properties – one, a linear product (television) and the other non-linear (online and digital), will completely be integrated. “There is no specific strategy for either of the products. The strategy will depend on the nature of the platform. On digital, social virality and distribution are important, while on TV distribution and breaking news play a vital role. We want to provide good quality content to the maximum number of households and also hope to bring advertisers on board,” says Bahl.

    With English news focused on six metros, the genre is often considered to be niche. And Bahl agrees that this is what BloombergQuint will concentrate on. “In India, the majority of our audience is there. But I think the audience will increase outside this catchment in sometime quickly,” he says. “But we are seeing audiences coming from tier two and three cities. We will provide content to wherever audiences are. We are a nationwide distributed TV property and on the digital front, we want to leave a global footprint.”

    “We have a huge source of content at Bloomberg and only hope to cater to a much larger audience in India and globally. Business is not niche; everyone gets affected by it,” adds Ravindranath.

    Both he and Bahl pooh-pooh the thought that digital and online is killing linear television. “TV will definitely survive as the core ethos remains the same. No. The commercials have caught up,” says Ravindranath.

    “The entire debate is incorrect. It’s not digital versus TV, its linear and nonlinear, static and mobile, family to individualistic”, adds Bahl.

    The launches will be heavily promoted on social media and will also see newsroom anchors indulging in social interactive services like Instagram and Whatsapp. “The intention is to push the traffic. Digital promotion is a big thing. We have a full business plan for everything. You just have to wait and watch,” says Ravindranath.

    And indeed everyone will be waiting and watching how messrs Bahl and Bloomberg fare in their second innings.

  • BloombergQuint: Business reporting the cross platform way

    BloombergQuint: Business reporting the cross platform way

    MUMBAI: The old TV news warhorse is back. After selling his Network18 business to Reliance’s Mukesh Ambani a couple of years ago, Raghav Bahl burst back on to the scene with a new digital venture Quintillion Media. Now the firm has got into bed with the global business information power house Bloomberg Media. The result of the union will take birth in the next three months as BloombergQuint India which will deliver business and financial news over traditional broadcast, digital and live events in the subcontinent.

    Bahl says journalism will be at the core of BloombergQuint India. Bloomberg recently dissolved its partnership in a company that included Reliance, UTV’s Ronnie Screwvala and had been operational in India as a TV channel for about eight years as UTV Bloomberg.

    Bahl believes that the entry of BloombergQuint in the hypercompetitive news space heralds challenges for both the partners, but they are up for the task. Says he: “It is a great sense of dejavu for us. We created this space which is now very powerful. We have created brands that are powerful. And now we are getting back in this space with a new offering and a new brand. There is a need for disruption and that’s where BloombergQuint stands which you will see with the service being rolled out. We have money…. and we are hoping to get good advertisers on board.”

    Bloomberg Media International managing director Parry Ravindranath explains that the Quintillion marks a first for his company.

    “We have been in India for around 20 years, “ he says. “But this is the first Bloomberg cross platform partnership. We continue to break new ground in news and deliver the best content in Asia’s fastest growing market.”

    And the decision to partner with Raghav was a natural one. “This is a second coming for Raghav and he has pioneered the business news genre in broadcast and digital in India. And he was my first boss,” adds Ravindranath with a smile.

    Adds his boss in the US Bloomberg Media CEO Justin Smith: ” It was clear when we met Raghav that we shared a common vision to create India’s premier digitally-led multi-platform business media company. And that met with our global vision. Currently, almost half of our digital traffic comes from outside the US and this figure continues to grow. Partnering with Quintillion Media in India is a game-changer for the country’s digital and broadcast media industries, and for Bloomberg Media globally as we take our investment to an exciting new phase.”

    “As the fastest growing major economy in the world, India is one of the most important stories we are covering in Asia. I’m glad we are partnering with Raghav and his team who have deep experience reporting on India for the past two decades,” chips in Bloomberg News APAC executive editor David Merritt.

    With the joint venture signed just a few days back, a gaggle of news professionals are being hired and it looks like its homecoming for them. The company has roped in former CNBC TV18 CEO Anil Uniyal and former CNBC-TV18 executive editor Menaka Doshi to serve as BloombergQuint’s CEO and managing editor respectively. Harsha Subramaniam, a Bloomberg executive producer will oversee the partnership for Bloomberg across platforms.

    “We have a set of robust colleagues on board joined by solid associates which we had in Network 18. I am delighted to have them with us. We also have Ritu Kapur with us and we are very confident about our product. They also bring a fantastic news structure. We are very proud that a global company has partnered with us,” says Bahl.

    It might be recalled that back in 2014, Bahl left a void in his own Network 18 group which was taken over by the Reliance Group. After Bahl moved out, the group also witnessed resignations from Sai Kumar, Ajay Chacko, RDS Bawa, Rajdeep Sardesai and Sagarika Ghose. Wishing Bahl luck for his new joint venture, India Today Group consulting editor Rajdeep Sardesai said, “I wish him very well. I have had enjoyable years with him and have shared an excellent relationship with Raghav.”

    “There is enormous potential in the English news genre and it’s only expanding. For now, they will have to follow the ad driven revenue model, but in the long run, every channel will love to follow a subscription revenue model,” says media analyst and IIM Calcutta professor Chandradeep (CD) Mitra. “A new channel can be successful if it has compelling content, great market presence and on-ground action. As advertisers are reluctant about going on new platforms, the channel can either give attractive rates or start with one well-known brand on board. Creating an impression helps a channel irrespective of whether it is earning profits or incurring losses.”

    The two properties – one, a linear product (television) and the other non-linear (online and digital), will completely be integrated. “There is no specific strategy for either of the products. The strategy will depend on the nature of the platform. On digital, social virality and distribution are important, while on TV distribution and breaking news play a vital role. We want to provide good quality content to the maximum number of households and also hope to bring advertisers on board,” says Bahl.

    With English news focused on six metros, the genre is often considered to be niche. And Bahl agrees that this is what BloombergQuint will concentrate on. “In India, the majority of our audience is there. But I think the audience will increase outside this catchment in sometime quickly,” he says. “But we are seeing audiences coming from tier two and three cities. We will provide content to wherever audiences are. We are a nationwide distributed TV property and on the digital front, we want to leave a global footprint.”

    “We have a huge source of content at Bloomberg and only hope to cater to a much larger audience in India and globally. Business is not niche; everyone gets affected by it,” adds Ravindranath.

    Both he and Bahl pooh-pooh the thought that digital and online is killing linear television. “TV will definitely survive as the core ethos remains the same. No. The commercials have caught up,” says Ravindranath.

    “The entire debate is incorrect. It’s not digital versus TV, its linear and nonlinear, static and mobile, family to individualistic”, adds Bahl.

    The launches will be heavily promoted on social media and will also see newsroom anchors indulging in social interactive services like Instagram and Whatsapp. “The intention is to push the traffic. Digital promotion is a big thing. We have a full business plan for everything. You just have to wait and watch,” says Ravindranath.

    And indeed everyone will be waiting and watching how messrs Bahl and Bloomberg fare in their second innings.

  • Bloomberg & Business Broadcast News end licensing deal in India

    Bloomberg & Business Broadcast News end licensing deal in India

    MUMBAI: After seven years of partnership, Bloomberg L.P. and Business Broadcast News have decided to end their media licensing agreement in India on 31 March, 2016.

     

    Both parties have mutually ended the licensing agreement and will pursue their respective new business strategies.

     

    While Business Broadcast News will continue to operate the TV channel with fresh branding effective 1 April, subject to regulatory approval, Bloomberg will announce a new media partner in due course of time.

     

    “Our strategic partnership with Reliance Group and Ronnie Screwvala enabled us to successfully reach millions of viewers in India, and deliver market-moving business and financial news on India’s growth and development,” said Bloomberg Media Group – International managing director Parry Ravindranathan. 

     

    “Together, we set new standards in financial broadcast journalism, and we will continue to value our relationship with both partners. In the coming weeks, we will unveil a new chapter for Bloomberg Media in India as we remain more committed than ever to expanding our media operations this year both in broadcast, digital and other platforms,” he added.

     

    Business Broadcast News director Tarun Katial said, “In recent years, the channel has witnessed consistent increase in reach and viewership, and created a benchmark for credible business news reporting with experienced anchors and marquee shows. We have had great learnings drawing upon the global expertise and credibility of Bloomberg, and we look forward to maintaining this strong relationship in the years ahead.”

  • Bloomberg & Business Broadcast News end licensing deal in India

    Bloomberg & Business Broadcast News end licensing deal in India

    MUMBAI: After seven years of partnership, Bloomberg L.P. and Business Broadcast News have decided to end their media licensing agreement in India on 31 March, 2016.

     

    Both parties have mutually ended the licensing agreement and will pursue their respective new business strategies.

     

    While Business Broadcast News will continue to operate the TV channel with fresh branding effective 1 April, subject to regulatory approval, Bloomberg will announce a new media partner in due course of time.

     

    “Our strategic partnership with Reliance Group and Ronnie Screwvala enabled us to successfully reach millions of viewers in India, and deliver market-moving business and financial news on India’s growth and development,” said Bloomberg Media Group – International managing director Parry Ravindranathan. 

     

    “Together, we set new standards in financial broadcast journalism, and we will continue to value our relationship with both partners. In the coming weeks, we will unveil a new chapter for Bloomberg Media in India as we remain more committed than ever to expanding our media operations this year both in broadcast, digital and other platforms,” he added.

     

    Business Broadcast News director Tarun Katial said, “In recent years, the channel has witnessed consistent increase in reach and viewership, and created a benchmark for credible business news reporting with experienced anchors and marquee shows. We have had great learnings drawing upon the global expertise and credibility of Bloomberg, and we look forward to maintaining this strong relationship in the years ahead.”

  • Reliance MediaWorks acquires 30 per cent stake in Prime Focus

    Reliance MediaWorks acquires 30 per cent stake in Prime Focus

    MUMBAI: After its mega announcement a few days ago about Prime Focus World merging with Double Negative to create the world’s largest independent, VFX, stereo conversion and animation company, one of the Ambani brothers has decided to step into the game as well.

     

    Anil Ambani owned Reliance MediaWorks has bought shares in Prime Focus and merged itself with Prime Focus. The trio will now be the world’s largest and most integrated media services group with over 5500 people across 20 locations offering services such as visual effects, stereo 3D conversion, animation and cloud-based digital media solutions that transcend the film, advertising and television industries.

     

    An announcement by the two companies to the BSE states that “the combination brings instant benefits to global clients, with new levels of creativity, technology innovation, truly integrated digital media services, unmatched scale, financial stability and sustainability.”

     

    The new group will also have the world’s first hybrid cloud-enabled media enterprise resource planning. This unique platform virtualises the content supply chain and helps broadcasters, studios, brands, sports and digital businesses manage their business of content by driving creative enablement, enhancing ecosystem efficiencies and sustainability, reducing costs and realising new monetisation opportunities.

     

    Reliance MediaWorks and the promoters of Prime Focus, Naresh and Namit Malhotra will each infuse fresh equity capital of Rs 120 crore into Prime Focus at Rs 52 per share through a preferential allotment, aggregating Rs 240 crore. The equity process will also be used to fund the merger of Prime Focus and Double Negative.

     

    The India and overseas operations of Reliance MediaWorks’ film and media services business will be combined with Prime Focus through a slump sale which means transferring of the whole or part of a business undertaking that is capable of carrying out operations independently for a lump sum consideration without assigning values to individual assets and liabilities. After that, the net consideration will be paid in the form of fresh equity shares of Prime Focus valued at the same share price.

     

    Once the preferential allotment and business combination is done, the shareholding of the Prime Focus’ promoters will come down from 41.48 per cent to 33.5 per cent and Reliance MediaWorks will be 30.2 per cent. The mandatory open offer in Prime Focus has also been announced to the extent of 26 per cent of the fully diluted share capital of Prime Focus at Rs 52 per share as well.

     

    Through this combination, Prime Focus’ will get access to one million square feet of facilities in Film City, Mumbai, 30 per cent stake in Hollywood VFX house- Digital Domain and 100 per cent ownership of LA based digital film restoration firm Lowry Digital.

     

    Reliance Capital states that it wants to primarily focus on its financial services and align its noncore investments with successful entrepreneurs.

     

    Namit Malhotra will be the executive chairman and global CEO of Prime Focus Group. Says he, “This is a very exciting time in the life of Prime Focus. From being able to partner the world’s finest visual effects provider Double Negative, to having the Reliance Group come on board, to help mobilise our strategy in building the bridge between the west and the east. I am very confident about the benefits this combination brings to all our customers, employees and stakeholders worldwide.”

     

    Speaking on the deal, Reliance Group group managing director Amitabh Jhunjhunwala said, “We are hugely excited about the transformational growth opportunity created by the powerful combination of the global film and media services business of Reliance MediaWorks and Prime Focus. Namit is an enormously passionate leader, who has created and run a highly successful global media services business. We are delighted to have the opportunity to support Prime Focus as the company moves to the next orbit of growth under Namit’s dynamic and ‘turbo-charged’ leadership.”

     

     Reliance MediaWorks CEO Venkatesh Roddam said that this was a natural and synergistic combination to optimise resources. “We are very pleased to combine our global film and media services business with Prime Focus. This will create enhanced value and new opportunities for all stakeholders, including customers in India and overseas and our dedicated team of people.”

     

    Commenting on the new media house creation, Reliance Capital CEO Sam Ghosh said, “The proposed transaction reflects a significant step forward in Reliance Capital’s strategy of unlocking value from its investments in sectors other than financial services. We intend to partner and align ourselves with successful entrepreneurs like Namit Malhotra of Prime Focus, who has established high growth businesses, and we will support them in their endeavours to attain global leadership and excellence in their chosen areas of core expertise. This strategy will free up management bandwidth  and resources  in Reliance Capital, enabling us to singularly focus  on, and   further  accelerate  growth  in, our  core  business of asset management, life  and non-life  insurance,  broking and distribution, commercial finance  and related sectors in financial services.”

     

    Similar discussions are underway in relation to unlocking of value from other investments made by Reliance Capital in areas outside financial services, and further announcements will be made at the appropriate stage.

     

    Some of the works handled by the trio include: The Dark Knight Trilogy, Transformers 4, Inception, Gravity, Harry Potter and Avatar. The deal between Reliance MediaWorks and Prime Focus brings integrated services to the Bollywood industry from equipment rental and shooting stages up to final digital distribution.

     

     EY India was the exclusive advisor to Reliance MediaWorks for the transaction and Centrum Capital was the exclusive advisor to Prime Focus. The transaction is expected to go on for a couple of weeks.

     

    Reliance MediaWorks and Prime Focus’s wholly owned company Monsoon Studio has taken 2,30,76,923 equity shares. 6,73,07,692 shares will be given via the open offer.