At first Zee acquire 9X music channels, later they can't handle them, at last such channels will be shut down. Its one kind of 'suicide' for 9X media.
Breaking News Zee to buy 9X Media
- Thread starter Arundass
- Start date
Dude technically speaking, once Zee takes over 9x business it will cease to be 9x media it'll become Zee entertainment enterprise.
Coming to the channel being shut, ZEE lacks presence in Music channel's. As it's taken over Anil Ambanis Big network and Big FM's are going to be taken over in a year or two it will give boost to its music portfolio.
It won't be surprising if this takeover becomes a stepping stone for Zee to enter Music channel business with launch of more regional music channels.
They surely will be flop
IndianMascot
Core Member
Badhai ho. 9X promoters are interested in money not our opinion guys 
Zee Entertainment Enterprises Ltd (ZEEL) will buy 9X Media for around Rs 170 crore as part of a broader plan to build a strong vertical around music channels, music labels and film production across languages. The FM radio business, being acquired by sister company Zee Media Corporation Ltd (ZMCL) from Anil Ambani’s Reliance Broadcast Network, will further provide a strategic fit to the group’s growth plans.
The deal is attractive on valuation terms as the price is one-time 9X Media’s sales, a source said. 9X Media, which runs a slew of music channels, has an annual turnover of around Rs 170 crore.
“In FY17, revenue fell due to demonetisation but normalised revenue is around Rs 170 crore,” the source said.
Though 9X Media has a marginal loss, it will be profit neutral for ZEEL due to the network strength, the source added.
Deals in the TV media space are generally struck at a higher ratio. According to Ashish Pherwani, media and entertainment advisory leader at EY India, TV media sees deals at upwards of 2.5 times sales. He declined to comment on specific deals.
Private equity firm New Silk Route (NSR), which owns close to 80% stake in 9X Media, has been hunting for a buyer since 2013. The exit route took a long time to come as deals in the music television space in India are hard to conclude.
9X Media operates its Punjabi music channel 9X Tashan through a joint venture. Sandeep Bansal, who grew up as a cable TV operator, has a 34% stake in the JV. With ZEEL taking over the entire business, the JV will get dismantled.
“9X Media has a multi-entity structure. ZEEL will take complete ownership of all the channels,” another source said.
ZEEL’s interest in gobbling up 9X Media comes at a time when it is increasing investments in movie production and music label businesses. The company, which has 11 movie channels across Hindi and regional languages, plans to gradually produce 10–12 movies a year. Acquisition of music rights is also being ramped up.
ZEEL’s advance amount towards investments in movies stood at Rs 446.1 crore at the end of FY17. Advances are paid for acquisition of future rights and advance purchase of rights of movies under production.
During FY17, Zee Music Company acquired the music rights to more than 143 movies including 58 Bollywood movies. The list of music acquisition includes titles like ‘Half Girlfriend’, ‘Dangal’, ‘Raees’, ‘Baar Baar Dekho’ and ‘Flying Jatt’.
“The value of the music genre has to be seen as a TV plus digital combined market. We will see bigger TV broadcast networks launching music channels in more regional languages. There is a business case as they are also producing movies,” said Pherwani.
By acquiring 9X Media, ZEEL will get the largest and only pure-play music TV vertical company in India. Besides a distinct positioning, there is also a ready revenue that ZEEL will get from the 9X Media acquisition.
“For ZEEL to scale up to that kind of revenue from the music TV vertical would have taken years. The valuation also looks reasonable. Besides, this will be a synergistic move as the company has already decided that Zee Studios and Zee Music will be important future growth drivers,” a media analyst said.
9X Media runs music channels 9XM and 9X Jalwa in Hindi, 9X Jhakaas in Marathi, 9XO in English and 9X Tashan in Punjabi. It also has SpotboyE, a digital offering of Bollywood news, gossip, music reviews and other updates. SpotboyE also streams the TV channels of 9X Media.
While flagship channel 9XM plays Bollywood hits, 9X Jalwa focuses on retro music, particularly music from the ‘90s. 9X Jhakaas was the first Marathi music channel to be launched and is seeing growth with more Marathi movies becoming popular and being produced.
Read more at: http://www.televisionpost.com/special-reports/zeels-purchase-of-9x-media-valuations-and-impact-on-music-tv-genre/ | TelevisionPost.com
The deal is attractive on valuation terms as the price is one-time 9X Media’s sales, a source said. 9X Media, which runs a slew of music channels, has an annual turnover of around Rs 170 crore.
“In FY17, revenue fell due to demonetisation but normalised revenue is around Rs 170 crore,” the source said.
Though 9X Media has a marginal loss, it will be profit neutral for ZEEL due to the network strength, the source added.
Deals in the TV media space are generally struck at a higher ratio. According to Ashish Pherwani, media and entertainment advisory leader at EY India, TV media sees deals at upwards of 2.5 times sales. He declined to comment on specific deals.
Private equity firm New Silk Route (NSR), which owns close to 80% stake in 9X Media, has been hunting for a buyer since 2013. The exit route took a long time to come as deals in the music television space in India are hard to conclude.
9X Media operates its Punjabi music channel 9X Tashan through a joint venture. Sandeep Bansal, who grew up as a cable TV operator, has a 34% stake in the JV. With ZEEL taking over the entire business, the JV will get dismantled.
“9X Media has a multi-entity structure. ZEEL will take complete ownership of all the channels,” another source said.
ZEEL’s interest in gobbling up 9X Media comes at a time when it is increasing investments in movie production and music label businesses. The company, which has 11 movie channels across Hindi and regional languages, plans to gradually produce 10–12 movies a year. Acquisition of music rights is also being ramped up.
ZEEL’s advance amount towards investments in movies stood at Rs 446.1 crore at the end of FY17. Advances are paid for acquisition of future rights and advance purchase of rights of movies under production.
During FY17, Zee Music Company acquired the music rights to more than 143 movies including 58 Bollywood movies. The list of music acquisition includes titles like ‘Half Girlfriend’, ‘Dangal’, ‘Raees’, ‘Baar Baar Dekho’ and ‘Flying Jatt’.
“The value of the music genre has to be seen as a TV plus digital combined market. We will see bigger TV broadcast networks launching music channels in more regional languages. There is a business case as they are also producing movies,” said Pherwani.
By acquiring 9X Media, ZEEL will get the largest and only pure-play music TV vertical company in India. Besides a distinct positioning, there is also a ready revenue that ZEEL will get from the 9X Media acquisition.
“For ZEEL to scale up to that kind of revenue from the music TV vertical would have taken years. The valuation also looks reasonable. Besides, this will be a synergistic move as the company has already decided that Zee Studios and Zee Music will be important future growth drivers,” a media analyst said.
9X Media runs music channels 9XM and 9X Jalwa in Hindi, 9X Jhakaas in Marathi, 9XO in English and 9X Tashan in Punjabi. It also has SpotboyE, a digital offering of Bollywood news, gossip, music reviews and other updates. SpotboyE also streams the TV channels of 9X Media.
While flagship channel 9XM plays Bollywood hits, 9X Jalwa focuses on retro music, particularly music from the ‘90s. 9X Jhakaas was the first Marathi music channel to be launched and is seeing growth with more Marathi movies becoming popular and being produced.
Read more at: http://www.televisionpost.com/special-reports/zeels-purchase-of-9x-media-valuations-and-impact-on-music-tv-genre/ | TelevisionPost.com
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India broadcasting giant, ZEE Entertainment Enterprises Limited (ZEEL) is reportedly getting closer to acquire the 9X Media clutch of Hindi and regional music channels.
The deal, which is set to be formalised as soon as this month, will see ZEEL take control of popular channels – 9XM, 9X Jalwa, 9X Bajao, 9XO (English), 9X Jhakaas (Marathi), 9X Tashan (Punjabi) and digital website, SpotBoye.
A spokesperson from ZEEL told Economic Times, “From time to time we keep looking at opportunities as part of our on-going business development. With regards to the same we have had certain exploratory discussions with 9X Media and its shareholders; however, no deal has been reached as yet. Needless to say, we shall inform the exchanges immediately if our talks fructify into any definitive deal.”
Last year, Sony Pictures Networks was in talks to buy the 9X Media channels but the deal fell through due to taxation issues.
ZEEL gets closer to acquire 9X music channels
The deal, which is set to be formalised as soon as this month, will see ZEEL take control of popular channels – 9XM, 9X Jalwa, 9X Bajao, 9XO (English), 9X Jhakaas (Marathi), 9X Tashan (Punjabi) and digital website, SpotBoye.
A spokesperson from ZEEL told Economic Times, “From time to time we keep looking at opportunities as part of our on-going business development. With regards to the same we have had certain exploratory discussions with 9X Media and its shareholders; however, no deal has been reached as yet. Needless to say, we shall inform the exchanges immediately if our talks fructify into any definitive deal.”
Last year, Sony Pictures Networks was in talks to buy the 9X Media channels but the deal fell through due to taxation issues.
ZEEL gets closer to acquire 9X music channels
scorpionking76
EntMnt Knight
Between 9x media has more bollywood music rights after T series?
And with Bigfm coming to zee's kitty in a year or so it will give zee and edge.
Zee Entertainment Enterprises Limited (“ZEEL”) today announced that it has entered into a definitive agreement to acquire 9X Media Pvt Ltd and its subsidiaries from New Silk Route and other shareholders for an all cash consideration of Rs. 1,600 million.
9X Media, along with its subsidiaries, operates a bouquet of six music channels – 9XM (Latest Bollywood), 9X Jalwa (Evergreen Hindi), 9X Jhakaas (Marathi), 9X Tashan (Punjabi), 9XO (English), 9X Bajao (Hindi Classics). On completion of the acquisition, these channels will be added to ZEEL’s current portfolio of 33 channels.
The acquisition is in line with the Company’s strategy to cater to diverse audience by offering targeted products. Besides significantly expanding its Hindi music portfolio, it gives ZEEL access to the regional music genre. It also increases its regional footprint with foray into the Punjabi market. 9X Media’s bouquet of channels have established a strong viewership on the back of the unique brand identity created over the years.
In addition to strengthening ZEEL’s television bouquet, these channels will complement the music label and movie production businesses. 9X Media’s popular Bollywood news portal, SpotboyE, will also be a part of the transaction. The Company is confident of utilizing network synergies to bring down the costs and significantly improve the profitability of these channels.
ZEEL signs definitive agreement to acquiring 9X Media and its subsidiaries
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