Blog Post

Walt Disney Buys Out Hungama TV; Picks Up 14.9 Per Cent Stake In UTV

Walt Disney is buying out the 100 per cent of kids’ channel Hungama TV (United Home Entertainment Ltd), owned by the UTV Software Communications. The deal is valued at $30.5 million. Walt Disney India is also taking a 14.9 per cent equity stake in the expanded capital of UTV Software Communications for about $14 milion. The deal is subject to regulatory and statutory approvals. This acquisition will integrate Hungama TV in the Walt Disney India portfolio, which at present comprises Disney Channel and Toon Disney.
In the 2004-2005 fiscal year, advertisers spent about $26 million on Indian children’s TV, an increase of nearly 16% from the previous year, according to TAM Media Research.

For more details go to Exchange4media.com and The Wall Street Journal.