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Summary:

It must be hard living up to a name like that. After recently announcing development deals with eight Hollywood based studio’s, Reliance ADA…

It must be hard living up to a name like that. After recently announcing development deals with eight Hollywood based studio’s, Reliance ADAG’s multi-billion entertainment arm Big Entertainment seems to be reaching for the Magic 10 figure. Mint quotes president Rajesh Sawhney expecting the firm to reach a $10 billion enterprise valuation soon. The article points to UTV and its recent $1 billion valuation post Walt Disney upping its stake in the Ronnie Screwvala helmed firm as comparison of more tangible assets considering most of Big’s big ticket forays, including Big Movies, are yet to be launched formally. Rajesh Sawhney makes a point on room for growth stating the global average contribution of media to overall GDP is 7% while in India its 3-4%, still at a Rs 40 billion valuation with the entire TV play (including DTH, IPTV) still to be launched, there is little in the Reliance portfolio, with the exception of Big FM and Zapak, that is a market leader. While Sawhney refused to divulge details on channel formats, industry sources indicate a music, movies and news channel as part of the initial launch plan with a general entertainment foray to follow later.

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By Cerius Shah

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  1. Valuations are a scam to make owners rich and share holders imaginary wealth. What is the revenue and profitability they are hoping to get to? After Reliance Power, i wouldnt believe anything ADA nd his bunch of flunks has to say or sell….ever!!

  2. ditto mobstir

  3. Long Time Listner Repeat Calle Monday, May 26, 2008

    @mobstir ,@nicky : This is a good news . i predict many acquisition in next two years .

  4. Somebody's salary seems to be tenfolding the company's enterprise valuation!

    How about this: List, delist and relist your stock. It will go up 99990% as the newspaper says. Hehehe

  5. Somebody's salary seems to be linked to tenfolding the company's valuation!

    How about this: List, delist and relist your stock. It will go up 99990% as the newspaper says. Hehehe

  6. Here is an interesting plot.

    1] Start a company and own 100%.
    2] Get some people on board and make a big presentation..ensure the presentation talks of nothing less than world domination
    3] get a friendly investor to buy a small stake for a huge sum thus raising the value of the company sky high
    4] Ensure a steady stream of announcements that appear headed towards many billions in wealth
    5] Get more PE Money
    6] Make more announcements
    7] When in doubt, repeat 4, 5 & 6
    8] Offer 10% stock to indian public at 500-1000x of existing networth of business

    Viola! I am a billionaire and my shareholders..well they make pennies while i keep the dollars. Is that unfair? Not if the shareholders are happy.

    Can everyone do this? well if you have a friendly investor willing to put millions on your behalf … sure. Else just ride the train and be happy with the pennies.

    BTW, wasnt Reliance Infocomm supposed to dominate Indian telecom? Is someone following up on those claims?

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