Blog Post

Hungama Acquires Stake In

CS has learned via multiple sources that Virtual Marketing, the holding company of Hungama, has recently acquired a controlling stake in web video publisher, We had recently asked Sunil Nair, CEO of Nautanki, for his comments on the acquisition, based on news from a reliable source. He stated in an e-mail conversation “For the record I deny that any such funding is happening with anyone.”

A tip received recently adds detail to the story, stating Hungama has acquired 74% stake in Nautanki for Rs 4 crore giving it a valuation of Rs 5.4 crore. A comment in a previous story stated that Nautanki was looking for a Rs 6 crore valuation (where again Nair denied the funding). The tip also states that Hungama (read as Virtual Marketing) is buying Santabanta’s online sales inventory exclusively in a revenue share deal. The reason stated is legalization of the T-series content. Hungama’s exclusive minimum guarantee arrangement with the music industry’s largest player has previously been the focus of slug-fests in the comments. Although, that hasn’t stopped T-series doing deals with the likes of Rediff (NSDQ: REDF) iShare. Considering MSN has parked inventory on BollywoodHungama, would that mean SantaBanta would be represented through the same network? We had recently reported Virtual marketing was about to get a minority investment of Rs 170 crores itself at a valuation of Rs 800 crores.

11 Responses to “Hungama Acquires Stake In”

  1. Yes, I agree with Sohail here – is the worst of the copyright offenders – ripping off so many content owners since 1999 when it first started. I don't know if anyone wants to touch them with a bargepole. All the best Hungama.

  2. Thanks Shiv. btw, how are you so sure if is he really joining his relative, or merely using it as an alibi to defect elsewhere? Theres enough happening in the media space, surely he can get himself a good job.

    who told you bigadda is shutting down? has nikhil soman (CTO) quit too?

  3. officus

    someone mentioned numbers far different from the ones quoted here. how come no one from either sides has issued a statement? and me thinks some vcs are cursing their luck on missing out on nautanki

  4. asterix

    hey you know what? Channel V started on that means now Rupert is interested in them. or maybe he has invested in them already. will the learned men here please comment on whether it is true?

  5. Tarkesh

    Video Ad network + branded social network + ad network + content portals + content + sales team = big success. what they have created is a huge media network. now whether they buy inventory, sell or partner the web consumer has no escape from some form of cummunication reaching him from this network. One more year and this combination will be valued at a huge premium because no one else comes anywhere close to the integrated approach.

  6. sohail

    Is it true to Siddharth Roy from BigAdda is joining Hungama ? I am confused reading this report. Is hungama buying the inventory or selling it? They sell the bollywoodhungama inventory to MSN/NDTV and they buy inventory from Santa Banta. I cannot make sense of this. Also what do they get by buying stake in Nautanki or Raaga. Nautanki might be clean but Raaga has been hunted by all the content owners. Will hungama actually pay money to yash raj and others for all the damages claimed (including hungama itself). Rafat/Nikhil – please throw some light here.

  7. vipul

    Someone finally has figured out that it is important to have a content+ad space+network play to get ahead of the clutter. So while the rest of the ad networks and Vcs played around with a me too idea, seems to have taken the fight to where the meat really is – content. Hungama has content – loads of it. Nautanki can now focus on growing their idea and finally stop going around with the begging bowls to people who never can understand what they are doing. Only regret wish this had happened some months ago.

  8. Deepak

    This seems to be becoming one of the largest integrated play in this part of the world. Nautanki network recently announced their social network initiative and their proposed as network. Significant also is the number of tv channels that are aligning with Nautanki network. Nair is an old Hungama hand and Neeraj, Mobani and Nair seem to bring huge power to the media they have created. Valuation be damned if this is true then the power equation in online media is slowly shifting to this combo.

  9. Vas-Guy

    Hungama seem to have taken the content business pretty seriously. Congratulations to Saleem and Neeraj Duo for deal.

    How does it help their eco system when they already do/ could do all this on ?