Monday, November 13, 2006 15:49 IST
NEW DELHI: Subhash Chandra-promoted Zee Telefilms has acquired a 50% stake in Dubai-based television channel, Ten Sports, for around Rs 256 crore. The enterprise value of Ten Sports is estimated at Rs 513 crore. The deal between the two broadcasters was announced on Monday.
The possibility of a merger is not being ruled out. It is learnt that Zee may consider hiking its stake in the channel, promoted by Abdul Rehman Bukhatir, only after 2009. For now, Zee and Ten Sports will be run as two separate entities, though they would share content. On the acquisition, Zee chairman Subhash Chandra said, “This is an important step towards consolidation in the media industry.”
Recently, Sony Entertainment Television (SET), which was keen on acquiring a 50% stake in Ten Sports, had called off the buyout talks over differences in ‘valuation’ figures.
Following the deal between Zee and Ten Sports, there will be four directors on the Ten Sports board from the Zee group. They are Deepak Jain, Jawahar Goel, Punit Goenka and Yogesh Radhakrishnan.
Three directors from Taj TV, which runs Ten Sports, will be retained on the board. Chris McDonald will continue to be the CEO of Ten Sports.
Himanshu Mody, business head of Zee Sports, told DNA Money, “It is a great strategic move for Zee.” The deal with a leading broadcaster like Ten Sports would help “us expand our sports bouquet”, Mody pointed out. According to him, “it emphasises Zee’s seriousness as a sports broadcaster.” On the possibility of a merger, he said, “It’s the logical next step.”
Sports properties of Ten Sports include telecast rights of the matches of the Pakistan Cricket Board, Sri Lanka Cricket Board, and the West Indies Cricket Board. In addition, it has the rights to UEFA Champions League, WWE, US Open and Hockey World Cup. Zee, on the other hand, has BCCI neutral venue rights, besides rights to Indian football, Davis Cup and WTA.
Interestingly, both Zee Sports and Ten Sports have put in their bids for telecast rights of matches to be organised by the International Cricket Council (ICC) for eight years starting 2007. ESPN-Star Sports has also bid for the same. The financial bids are expected to be finalised this week, after which the name of the rights holder would be announced, perhaps on Friday, in Dubai.
Ten Sports was launched in 2002 and is available in 50 million cable and satellite households across the world. After the deal with Zee, Ten Sports CEO Chris McDonald said, “As has been reported on many occasions, we had been in discussions with various potential strategic investors.”
“Without question, Zee, Asia’s premier media concern, is the right choice for us. They bring strength to our business,” he said.
Following Zee’s stake acquisition in Ten Sports, the financial statements of Taj Television would be consolidated in Zee’s books. Taj TV is expected to have an average annual revenue of $50 million for the next three financial years, Zee said in a statement.
Monday, November 13, 2006
Saturday, November 11, 2006
Mumbai Footprints 2006 - Media Seminar
Mumbai Footprints 2006 - Media
SeminarDate/ Duration 09
November, 2006 Venue Description Footprints
is a series of nationwide educational media seminars that are conducted in various
cities across India. The event would cover three aspects of mass media, viz. Advertising,
Films and Audio Visual and Journalism. Participation Call
Franz Dias - 09226224419, Richard Thomas - 09860180321, or write at at footprints2006.m@gmail.com
Organiser Symbiosis
Institute of Mass Communication
Seminar
November, 2006
Indian
Merchants Chambers Auditorium, Churchgate, Mumbai
is a series of nationwide educational media seminars that are conducted in various
cities across India. The event would cover three aspects of mass media, viz. Advertising,
Films and Audio Visual and Journalism.
Franz Dias - 09226224419, Richard Thomas - 09860180321, or write at at footprints2006.m@gmail.com
Institute of Mass Communication
Zee stumps rivals with $900m bid for ICC rights
MUMBAI
The Zee group
has stunned the sports marketing and broadcast world with an astounding $900-million bid for all rights to the ICC cricket world cups and tournaments for the next eight years.
Zee's bid is followed by ESPN-Star Sports, which has bid over $600 million just for the rights to telecast matches in the Indian sub-continent. Ten Sports, which teamed up with German sports Infront, has submitted a bid worth $600 million while Singapore-based Nimbus Sports has bid $160-180 million for only the international rights. ICC had invited bids from global companies for all rights relating to the two world cups, three champions trophy tournaments and some 20/20 tournaments. The rights cover TV, DTH, radio and new media.
Zee, which has launched a sports channel but did not have any major cricket properties, was desperate to secure these rights. ESPN-Star, which failed in its last attempt to get the world cup rights and the India cricket rights last year, was equally determined. But the Subhash Chandra-promoted group seems to have edged out the Walt Disney-Rupert Murdoch promoted combine in this latest battle. Many experts think that Zee is likely to walk away with the rights given its aggressiveness.
At $900 million, Zee's bid is several times more than what Sony Entertainment Television paid when the last ICC rights were awarded more than four years ago. It also shows that Indian groups can be counted upon to consider cricket to be a hot property despite the lacklustre performance of the Indian team in the past few years and the fact that the next two world cups are unlikely to feature several of the current big stars.
Sony, the natural incumbent, is out of the race with Sony's international board not allowing its Indian subsidiary — Set India — to bid due to for the high-risk factor coupled with the steep investment cost that cricket has been garnering lately.
Zee, as of now, seems to be the most aggressive bidder, and all factors seem to suggest that this time round it might emerge successful, industry experts pointed out.
The Zee group
has stunned the sports marketing and broadcast world with an astounding $900-million bid for all rights to the ICC cricket world cups and tournaments for the next eight years.
Zee's bid is followed by ESPN-Star Sports, which has bid over $600 million just for the rights to telecast matches in the Indian sub-continent. Ten Sports, which teamed up with German sports Infront, has submitted a bid worth $600 million while Singapore-based Nimbus Sports has bid $160-180 million for only the international rights. ICC had invited bids from global companies for all rights relating to the two world cups, three champions trophy tournaments and some 20/20 tournaments. The rights cover TV, DTH, radio and new media.
Zee, which has launched a sports channel but did not have any major cricket properties, was desperate to secure these rights. ESPN-Star, which failed in its last attempt to get the world cup rights and the India cricket rights last year, was equally determined. But the Subhash Chandra-promoted group seems to have edged out the Walt Disney-Rupert Murdoch promoted combine in this latest battle. Many experts think that Zee is likely to walk away with the rights given its aggressiveness.
At $900 million, Zee's bid is several times more than what Sony Entertainment Television paid when the last ICC rights were awarded more than four years ago. It also shows that Indian groups can be counted upon to consider cricket to be a hot property despite the lacklustre performance of the Indian team in the past few years and the fact that the next two world cups are unlikely to feature several of the current big stars.
Sony, the natural incumbent, is out of the race with Sony's international board not allowing its Indian subsidiary — Set India — to bid due to for the high-risk factor coupled with the steep investment cost that cricket has been garnering lately.
Zee, as of now, seems to be the most aggressive bidder, and all factors seem to suggest that this time round it might emerge successful, industry experts pointed out.
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