NEW DELHI: Taiwan's MediaTek, maker of chips used in mobile phones, picked up a 10% stake in Indian value-added services playerSpice Digital for $20 million, valuing the company at $200 million, or 883 crore.
MediaTek chairman Ming-Kai Tsai said: "Through this investment in Spice Digital, we are hoping to capitalise on its market potential and reinforce its strong operator relationship and leading position in India, SEA, Africa and Middle East."
This is the latest move by MediaTek, which already has presence in India, to expand into the fast growing economy and its booming telecom market. Mobile value-added service market in India is expected to grow 100% over five years and will constitute about 10% of total telecom revenue for Indian operators, according to market research.
Success in my Habit
Friday, July 29, 2011
ONGC, Sistema may soon merge assets in Russia
NEW DELHI: Oil and Natural Gas Corporation (ONGC) is scrutinising data of Russian blocks of theSistema group, preparatory to finalising a seven-month old proposal to merge their assets in Russia to create giant energy firm that will be 25% owned by Indian firm's overseas armONGC Videsh (OVL), two oil ministry officials said. They said Sistema was also studying data of OVL's Russian assets held by Imperial Energy.
"The valuation of companies will be ascertained after that," one official said, requesting anonymity.OVL acquired Imperial Energy in 2009 for $2.1 billion. OVL managing directorJoeman Thomas confirmed the development. "We have received data from Sistema very recently. It may take couple of months to analyse data before we take a decision," he told ET.
Last December, energy majors of two countries had announced a mega-merger of three companies - Bashneft, RussNeft and Imperial Energy - that would make ONGC a shareholder in Russian firms' annual oil production of 25 million tonnes, refining capacity of 20 million tonnes a year, and discovered oilfields Trebs and Titov. The merger is expected to bail out Imperial Energy that is struggling to be profitable due to high taxes imposed on foreign oil and gas in Russia.
Earlier, Thomas told reporters the company was expecting a tax relief from the Russian authorities. "So far, we have been able to manage operating profit of $15-16 per barrel before capex and opex (capital expenditure and operating expenditure)," he said. India is demanding exemption from mineral extraction tax and a 10-year tax holiday from export duty for Imperial Energy as its assets are located in difficult geographical terrain.
Russia provides tax relief to companies operating in similar geographical regions such as East Siberia. The proposed merger deal will also give ONGC an immediate access to the biggest discovered oilfields in Russia, Trebs and Titov, which India was eyeing for a long time. The fields have estimated 200 million tonnes recoverable reserves, equivalent to 35% of ONGC's total oil reserves. The deal is significant for India that imports 80% of the oil it consumes.
The deal, which does not involve any cash transaction, was announced in December 21, 2010, during the official visit of PresidentDmitry Medvedev to India. Sistema has 75% direct stake in Bashneft that produces 13 million tonnes of oil from fields in Russia.
"The valuation of companies will be ascertained after that," one official said, requesting anonymity.OVL acquired Imperial Energy in 2009 for $2.1 billion. OVL managing directorJoeman Thomas confirmed the development. "We have received data from Sistema very recently. It may take couple of months to analyse data before we take a decision," he told ET.
Last December, energy majors of two countries had announced a mega-merger of three companies - Bashneft, RussNeft and Imperial Energy - that would make ONGC a shareholder in Russian firms' annual oil production of 25 million tonnes, refining capacity of 20 million tonnes a year, and discovered oilfields Trebs and Titov. The merger is expected to bail out Imperial Energy that is struggling to be profitable due to high taxes imposed on foreign oil and gas in Russia.
Earlier, Thomas told reporters the company was expecting a tax relief from the Russian authorities. "So far, we have been able to manage operating profit of $15-16 per barrel before capex and opex (capital expenditure and operating expenditure)," he said. India is demanding exemption from mineral extraction tax and a 10-year tax holiday from export duty for Imperial Energy as its assets are located in difficult geographical terrain.
Russia provides tax relief to companies operating in similar geographical regions such as East Siberia. The proposed merger deal will also give ONGC an immediate access to the biggest discovered oilfields in Russia, Trebs and Titov, which India was eyeing for a long time. The fields have estimated 200 million tonnes recoverable reserves, equivalent to 35% of ONGC's total oil reserves. The deal is significant for India that imports 80% of the oil it consumes.
The deal, which does not involve any cash transaction, was announced in December 21, 2010, during the official visit of PresidentDmitry Medvedev to India. Sistema has 75% direct stake in Bashneft that produces 13 million tonnes of oil from fields in Russia.
Data shows deeper US recession, sharper slowdown
WASHINGTON: The Great Recession" was even greater than previously thought, and theUS economy has skated uncomfortably close to a new one this year.
New data on Friday showed the 2007-2009US recession was much more severe than prior measures had found, with economic output declining a cumulative of 5.1 per cent instead of 4.1 per cent.
The report also showed the current slowdown began earlier and has been deeper than previously thought, with growth in the first quarter advancing at only a 0.4 per cent annual pace.
The data indicated the economy began slowing in the fourth quarter of last year before high gasoline prices and supply chain disruptions from Japan's earthquake had hit, suggesting the weakness is more fundamental and less temporary than economists had believed.
The annual revisions ofUS GDP data from the Commerce Department showed economic growth contracted at an annual average rate of 0.3 per cent between 2007 and 2010. Output over that stretch had previously been estimated to have been flat.
At the depth of the recession in the fourth quarter of 2008, output plummeted at an annual rate of 8.9 per cent -- the steepest quarterly decline since 1958, and 2.1 per centage points more than previously reported.
For a table, see see [ID:nCLATIE70O] The recession was already the deepest since the Great Depression and, while it still pales in comparison, the data help explain why it is taking so long to shake off its legacy.
"The general picture of the recession remains pretty much the same, it was a record decline before and now it is a even bigger decline,"Steven Landefeld, the director of the department'sBureau of Economic Analysis, told reporters.
New data on Friday showed the 2007-2009US recession was much more severe than prior measures had found, with economic output declining a cumulative of 5.1 per cent instead of 4.1 per cent.
The report also showed the current slowdown began earlier and has been deeper than previously thought, with growth in the first quarter advancing at only a 0.4 per cent annual pace.
The data indicated the economy began slowing in the fourth quarter of last year before high gasoline prices and supply chain disruptions from Japan's earthquake had hit, suggesting the weakness is more fundamental and less temporary than economists had believed.
The annual revisions ofUS GDP data from the Commerce Department showed economic growth contracted at an annual average rate of 0.3 per cent between 2007 and 2010. Output over that stretch had previously been estimated to have been flat.
At the depth of the recession in the fourth quarter of 2008, output plummeted at an annual rate of 8.9 per cent -- the steepest quarterly decline since 1958, and 2.1 per centage points more than previously reported.
For a table, see see [ID:nCLATIE70O] The recession was already the deepest since the Great Depression and, while it still pales in comparison, the data help explain why it is taking so long to shake off its legacy.
"The general picture of the recession remains pretty much the same, it was a record decline before and now it is a even bigger decline,"Steven Landefeld, the director of the department'sBureau of Economic Analysis, told reporters.
HCL Technologies to hire 3,000 people in Q1
Software exporter HCL Technologies (HCLT) today said it will hire about 3,000 people in the July-September quarter."We have already hired 3,000 people in the June quarter. In this quarter, we will hire an additional 3,000 freshers," HCLT Chief Executive Vineet Nayar told reporters here.
The Indian IT industry is ramping up its headcount as it gears up to meet renewed demand for IT services following a slump during the economic meltdown.
The companies are also building up bench strengths to handle the bigger size and variety of projects they expect to grab in the coming months.
Larger rival Tata Consultancy Services ( TCS)) plans to hire about 60,000 people this fiscal, while peers Wipro and Infosys are also hiring aggressively.
The move to hire more people, coupled with wage hikes, will have an impact of about 300 basis points on the first quarter numbers of HCLT.
"We expect the September quarter margins to drop 300 basis points. Of this, about 250 bps would be on account of wage hikes and the remaining 50 bps on new hires," Nayar said.
The company, which follows a July-June fiscal, has given a 12-14 per cent wage hike for its Indiastaff, while onsite salaries have been increased by 2-3 per cent. The wage hikes are effective July 1.
HCLT is, however, confident of making up for the drop in margins. "Though we are expecting a 300 bps drop in margins in Q1, we will recover in the next three quarters," he said.
The company also plans a capital expenditure of USD 230 million in FY'12.
"Last year, our capex was at USD 170 million. This year, we are stepping up our capex to USD 230 million. Most of this will go toward expansion of campuses," HCLT Chief Financial Officer Anil Chanana said.
The Indian IT industry is ramping up its headcount as it gears up to meet renewed demand for IT services following a slump during the economic meltdown.
The companies are also building up bench strengths to handle the bigger size and variety of projects they expect to grab in the coming months.
Larger rival Tata Consultancy Services ( TCS)) plans to hire about 60,000 people this fiscal, while peers Wipro and Infosys are also hiring aggressively.
The move to hire more people, coupled with wage hikes, will have an impact of about 300 basis points on the first quarter numbers of HCLT.
"We expect the September quarter margins to drop 300 basis points. Of this, about 250 bps would be on account of wage hikes and the remaining 50 bps on new hires," Nayar said.
The company, which follows a July-June fiscal, has given a 12-14 per cent wage hike for its Indiastaff, while onsite salaries have been increased by 2-3 per cent. The wage hikes are effective July 1.
HCLT is, however, confident of making up for the drop in margins. "Though we are expecting a 300 bps drop in margins in Q1, we will recover in the next three quarters," he said.
The company also plans a capital expenditure of USD 230 million in FY'12.
"Last year, our capex was at USD 170 million. This year, we are stepping up our capex to USD 230 million. Most of this will go toward expansion of campuses," HCLT Chief Financial Officer Anil Chanana said.
Nintendo posts loss, slashes 3DS prices
Japan's Nintendo reported a first-quarter loss, lowered its annual forecast and slashed the price of its 3DS handheld console by 40 per cent less than six months after its launch.
The gaming giant booked a net loss of 25.5 billion yen ($327.9 million) for the April-June quarter and cut its forecast for the year to March 2012 to a net profit of 20 billion yen, down 74.2 per cent from the previous year.
Nintendo also said it would slash the price of its 3DS handheld console, released in February, from 25,000 yen to 15,000 yen from August 11 in Japan, to be followed by similar cuts in foreign markets by September.
The 3DS, the world's first video game console with a 3D screen that works without special glasses, globally sold 710,000 units and 4.53 million game titles during the period.
Its price will be lowered to generate "momentum" for the device before the key year-end shopping season, Nintendo said.
Meanwhile, the Wii home console sold 1.56 million units, thanks mainly to price cuts in the European and US markets. But the Wii business also suffered from having a limited number of mega hit game titles.
In the first quarter, Kyoto-based Nintendo -- which like other game makers faces stiff competition from smart phones and tablet computers -- said a limited number of megahit game titles and a soaring yen hurt its earnings.
A surging yen against the dollar, the inventory markdown due to the planned price cuts, global advertisement and promotional costs for the 3DS, plus research and development costs for new products, also weighed on the earnings.
The company lowered its exchange rate projections for the dollar from 83 yen to 80 yen and for the euro from 120 yen to 115 yen. In the first quarter last year, the company valued the dollar at an average of 92 yen.
"These factors considerably decreased profits," Nintendo said.
Nintendo in June announced a plan to launch a Wii U" console in 2012, as the global game sector becomes increasingly crowded with competitors.
The gaming giant booked a net loss of 25.5 billion yen ($327.9 million) for the April-June quarter and cut its forecast for the year to March 2012 to a net profit of 20 billion yen, down 74.2 per cent from the previous year.
Nintendo also said it would slash the price of its 3DS handheld console, released in February, from 25,000 yen to 15,000 yen from August 11 in Japan, to be followed by similar cuts in foreign markets by September.
The 3DS, the world's first video game console with a 3D screen that works without special glasses, globally sold 710,000 units and 4.53 million game titles during the period.
Its price will be lowered to generate "momentum" for the device before the key year-end shopping season, Nintendo said.
Meanwhile, the Wii home console sold 1.56 million units, thanks mainly to price cuts in the European and US markets. But the Wii business also suffered from having a limited number of mega hit game titles.
In the first quarter, Kyoto-based Nintendo -- which like other game makers faces stiff competition from smart phones and tablet computers -- said a limited number of megahit game titles and a soaring yen hurt its earnings.
A surging yen against the dollar, the inventory markdown due to the planned price cuts, global advertisement and promotional costs for the 3DS, plus research and development costs for new products, also weighed on the earnings.
The company lowered its exchange rate projections for the dollar from 83 yen to 80 yen and for the euro from 120 yen to 115 yen. In the first quarter last year, the company valued the dollar at an average of 92 yen.
"These factors considerably decreased profits," Nintendo said.
Nintendo in June announced a plan to launch a Wii U" console in 2012, as the global game sector becomes increasingly crowded with competitors.
Alibaba launches smartphone running its Cloud OS
Alibaba Group launched its first self-developed mobile operating system andsmartphone on Thursday in a bid to capture a slice of China's rapidly growing mobile Internet market.
The cloud computing-based operating system, Aliyun, will run the K-Touch Cloud Smartphone, to be launched at the end of July in 10 colours, saidWang Jian, president ofAlibaba Cloud Computing, a unit of Alibaba Group.
A tablet PC running the Aliyun OS, which is based on a customised Android system, will also be launched in China by the end of the year, Wang told reporters after a presentation inBeijing.
Handset manufacturer Tianyu will manufacture the K-Touch as well as the tablet, Wang said.
"Mobile users want a more open and convenient mobile OS, one that allows them to truly enjoy all that the Internet has to offer, right in the palm of their hand, and the cloud OS, with its use of cloud-based applications, will provide that," said
The Aliyun operating system will feature cloud services such as email, Internet search and support for web-based applications. Users will not be required to download or install applications onto their mobile devices, Wang said.
Alibaba Cloud plans to integrate the operating system with other devices including mobile phones with larger screens and tablet computers in the coming months.
Wang said the company was looking to launch tablet computers running Aliyun by the end of the year.
The company is currently in talks with Qualcomm Inc to develop a lower-end chipset optimised to run Aliyun OS in lower-end mobile phones, Wang said. The K-Touch phones use a high-end chipset fromNvidia Corp for crisp display of intricate games.
Alibaba Group, which is 40 percent owned by Yahoo Inc , operates China's largest B2B online marketplace, Alibaba.com , and China's largest online consumer shopping site, Taobao.com.
Wang said Alibaba does not have sales targets for the K-Touch. "We are not responsible for selling the phone; we just provide the system, so there is no hard number," he said, adding that within 15 minutes of the end of Thursday's presentation, Alibaba sold 1,000 of the phones on Taobao.
Alibaba will have an English-language version of the Aliyun OS ready by the end of this year, but Wang could not say when English versions of the phones and tablets might go on sale.
Nor will Alibaba get into the phone-manufacturing business, Wang said. "We shouldn't make a phone," he said. "We're not in that ecosystem, and it's a very good decision not to make a phone."
China, the world's largest mobile phone market, has nearly 907 million mobile subscribers, according to statistics provided by the three leading telcos in June.
The cloud computing-based operating system, Aliyun, will run the K-Touch Cloud Smartphone, to be launched at the end of July in 10 colours, saidWang Jian, president ofAlibaba Cloud Computing, a unit of Alibaba Group.
A tablet PC running the Aliyun OS, which is based on a customised Android system, will also be launched in China by the end of the year, Wang told reporters after a presentation inBeijing.
Handset manufacturer Tianyu will manufacture the K-Touch as well as the tablet, Wang said.
"Mobile users want a more open and convenient mobile OS, one that allows them to truly enjoy all that the Internet has to offer, right in the palm of their hand, and the cloud OS, with its use of cloud-based applications, will provide that," said
The Aliyun operating system will feature cloud services such as email, Internet search and support for web-based applications. Users will not be required to download or install applications onto their mobile devices, Wang said.
Alibaba Cloud plans to integrate the operating system with other devices including mobile phones with larger screens and tablet computers in the coming months.
Wang said the company was looking to launch tablet computers running Aliyun by the end of the year.
The company is currently in talks with Qualcomm Inc to develop a lower-end chipset optimised to run Aliyun OS in lower-end mobile phones, Wang said. The K-Touch phones use a high-end chipset fromNvidia Corp for crisp display of intricate games.
Alibaba Group, which is 40 percent owned by Yahoo Inc , operates China's largest B2B online marketplace, Alibaba.com , and China's largest online consumer shopping site, Taobao.com.
Wang said Alibaba does not have sales targets for the K-Touch. "We are not responsible for selling the phone; we just provide the system, so there is no hard number," he said, adding that within 15 minutes of the end of Thursday's presentation, Alibaba sold 1,000 of the phones on Taobao.
Alibaba will have an English-language version of the Aliyun OS ready by the end of this year, but Wang could not say when English versions of the phones and tablets might go on sale.
Nor will Alibaba get into the phone-manufacturing business, Wang said. "We shouldn't make a phone," he said. "We're not in that ecosystem, and it's a very good decision not to make a phone."
China, the world's largest mobile phone market, has nearly 907 million mobile subscribers, according to statistics provided by the three leading telcos in June.
Logitech cuts targets, replaces CEO
Logitech , the world's biggest computer mouse maker, cut its sales target and replaced its chief executive on Thursday after weak sales in Europe pushed it into the red in the three months to the end of June.
Logitech, which also produces speakers, webcams and keyboards, faces sluggish consumer demand in Europe where a cloudy economic outlook is dampening willingness to spend.
Sales to Europe, the Middle East and Africa in the first quarter of its business year fell 14 percent, while in the Americas they rose only 1 percent.
After trying to entice buyers by slashing the price on its key Google TV set-top box by $150, the firm posted a first-quarter net loss of $30 million, versus a profit of $20 million a year earlier.
In a note to clients entitled "Logitech hasn't yet made it out of the mouse trap", analysts at Wegelin described the group's results and outlook as disappointing.
Shares in the company sank to their lowest since October 2001, and were down 9 percent to 7. 48 Swiss francs at 0 911 GMT, underperforming a 0.9 percent weaker Swiss index. They have plummeted more than 50 percent since January.
"The result is abysmal," said one trader in Zurich.Philips , Europe's biggest consumer electronics producer, has also been hit by sagging consumer demand, and issued a grim outlook after a surprise quarterly loss.
To help restore confidence, Chairman Guerrino De Luca, who headed the company from 1998-2008, will replace Gerald Quindlen as chief executive until a permanent replacement can be found, Logitech said.
"We welcome the return of De Luca as CEO (until another candidate is identified) which may help to restore some confidence," Michael Voeth of Vontobel said in a note.
After the weak first quarter, Logitech now expects sales of $2.5 billion for the 2012 fiscal year, down from an earlier forecast of $2.6 billion, a figure that had already disappointed some analysts
Logitech, which also produces speakers, webcams and keyboards, faces sluggish consumer demand in Europe where a cloudy economic outlook is dampening willingness to spend.
Sales to Europe, the Middle East and Africa in the first quarter of its business year fell 14 percent, while in the Americas they rose only 1 percent.
After trying to entice buyers by slashing the price on its key Google TV set-top box by $150, the firm posted a first-quarter net loss of $30 million, versus a profit of $20 million a year earlier.
In a note to clients entitled "Logitech hasn't yet made it out of the mouse trap", analysts at Wegelin described the group's results and outlook as disappointing.
Shares in the company sank to their lowest since October 2001, and were down 9 percent to 7. 48 Swiss francs at 0 911 GMT, underperforming a 0.9 percent weaker Swiss index. They have plummeted more than 50 percent since January.
"The result is abysmal," said one trader in Zurich.Philips , Europe's biggest consumer electronics producer, has also been hit by sagging consumer demand, and issued a grim outlook after a surprise quarterly loss.
To help restore confidence, Chairman Guerrino De Luca, who headed the company from 1998-2008, will replace Gerald Quindlen as chief executive until a permanent replacement can be found, Logitech said.
"We welcome the return of De Luca as CEO (until another candidate is identified) which may help to restore some confidence," Michael Voeth of Vontobel said in a note.
After the weak first quarter, Logitech now expects sales of $2.5 billion for the 2012 fiscal year, down from an earlier forecast of $2.6 billion, a figure that had already disappointed some analysts
Tuesday, July 26, 2011
Tata Sky launches 'Tata Sky Mobile Access'
New Delhi: Tata Sky, the leading direct-to-home service provider, has in association withRyz Media Inc introduced 'Tata Sky Mobile Access', a cutting edge app for Apple devices.
This app enables subscribers to user their iPhones,iPads and iPod Touch as a universal remote to control consumer electronic devices in their homes. In addition, subscribers can use the app to access 4-day programme listings, read extended information for movies; search for programs based on title and set their favourite shows for recording on the go. Keeping in line with the constant need for being connected to friends and family through social platforms,Tata Sky Mobile access allows subscribers to share what they are watching on TV through Facebook and Twitter, the company said.
Further, the app allows subscribers to view which programmes their Facebook friends are currently watching, helping them to decide on what to watch. At launch, this app will be available on Apple Devices only. An app for Android devices will be launched shortly after.
This app can be downloaded free of cost from the iTunes store and will work across all Tata Sky boxes. To use the Universal Remote Functionality, the subscriber will need to use the app along with a unique orb-shaped MP3 Mobile Accessory. This accessory plugs into the audio jack of the Apple Device and enables the subscriber to control his Tata Sky set-top box, TV, amplifier and DVD player. As part of the launch phase, the new MP3 Mobile accessory will be given free of charge to the first 1000 subscribers. Post the promotional period, the accessory can be purchased for Rs 350, including shipping and handling.
Speaking on the launch, Vikram Mehra, Chief Marketing Officer, Tata Sky, said, "Over the last one year, India has witnessed an explosion of tablets and smart phones combined with an unprecedented popularity of social platforms like Facebook and Twitter across all age groups. The Tata Sky Mobile Access App is a natural integration of TV entertainment with these smart devices allowing subscribers to not only control their TV and set-top boxes with their smart devices, but also make their content choice based on what their friends and family are viewing. This is the first-of-its-kind functionality offered by any DTH service provider in India."
This app enables subscribers to user their iPhones,iPads and iPod Touch as a universal remote to control consumer electronic devices in their homes. In addition, subscribers can use the app to access 4-day programme listings, read extended information for movies; search for programs based on title and set their favourite shows for recording on the go. Keeping in line with the constant need for being connected to friends and family through social platforms,Tata Sky Mobile access allows subscribers to share what they are watching on TV through Facebook and Twitter, the company said.
Further, the app allows subscribers to view which programmes their Facebook friends are currently watching, helping them to decide on what to watch. At launch, this app will be available on Apple Devices only. An app for Android devices will be launched shortly after.
This app can be downloaded free of cost from the iTunes store and will work across all Tata Sky boxes. To use the Universal Remote Functionality, the subscriber will need to use the app along with a unique orb-shaped MP3 Mobile Accessory. This accessory plugs into the audio jack of the Apple Device and enables the subscriber to control his Tata Sky set-top box, TV, amplifier and DVD player. As part of the launch phase, the new MP3 Mobile accessory will be given free of charge to the first 1000 subscribers. Post the promotional period, the accessory can be purchased for Rs 350, including shipping and handling.
Speaking on the launch, Vikram Mehra, Chief Marketing Officer, Tata Sky, said, "Over the last one year, India has witnessed an explosion of tablets and smart phones combined with an unprecedented popularity of social platforms like Facebook and Twitter across all age groups. The Tata Sky Mobile Access App is a natural integration of TV entertainment with these smart devices allowing subscribers to not only control their TV and set-top boxes with their smart devices, but also make their content choice based on what their friends and family are viewing. This is the first-of-its-kind functionality offered by any DTH service provider in India."
Walt Disney offers to buy out UTV's rest 49.56% stake for Rs 2,000 cr
NEW DELHI:Walt Disney Co plans to buy the rest ofUTV Software Communications (UTV) it does not own and delist the company in a deal potentially valued at $454 million, or Rs 2,014 crore, as the US entertainment giant seeks to expand its presence in Bollywood, media and gaming.
The Burbank, California-based company, which owns 50.44% of UTV Software, said in a statement it would buy out public shareholders at a price not exceeding 1,000 per share, an 11% premium to Monday's stock closing price of Rs 901.8. The buyout will give Walt Disney control over five businesses.
UTV Software, a holding company, makes and distributes movies, broadcasts a clutch of movie and entertainment channels, produces content for television and other digital media, and also has a presence in gaming.
It operates through a number of subsidiaries, including movie production under UTV Motion Pictures, Indiagames, andUTV Global Broadcasting that broadcasts entertainment and movie channels. All these will become part of Walt Disney's Indian unit once the transaction is completed.
Following the news of the buyout, one of the biggest in India's media and entertainment industry, the company's stock closed at Rs 950.45, or 5.39% higher, on the Bombay Stock Exchange on Tuesday.
Disney said it would also buy the 20% stake held by promoter Rohinton (Ronnie) Screwvala and his associates if it garnered enough shares to delist the company. It, however, said delisting of a public company in India was a long process and could take several months to complete.
"Given the multiple stages and the nature of the process, a successful outcome is uncertain," it added.
The entertainment behemoth also said if the delisting went through, Screwvala would cease to be the chairman and managing director ofUTV Software Communications and become the managing director ofThe Walt Disney Company India, responsible for overseeing Indian businesses of theDisney Group.
Mahesh Samat, currently managing Disney's assets in India, will become chief operating officer, reporting to Screwvala. The statement did not say what would happen if the response to the open offer was insufficient to delist the company. Disney's statement merely said if the delisting was unsuccessful, it would "consider the full range of strategic options".
Farokh Balsara, partner & national leader, media & entertainment practice, at consultant Ernst & Young, said the deal illustrated the potential of the Indian movie and entertainment market. "It is an endorsement of the potential international companies see in the robust Indian entertainment and media sector. UTV and Disney are similar businesses and the acquisition will help Disney synergise its Indian operations. These are some of the bets international companies are making in the fast-growing Indian market."
India is the world's third-largest TV market trailing China and the US with nearly 138 million TV households, according to a March 2011 report by KPMG and industry lobby FICCI. The media and entertainment industry is likely to expand 14% annually until 2015, with segments such as TV, gaming and animation expected to outpace the industry growth, the report said.
The Burbank, California-based company, which owns 50.44% of UTV Software, said in a statement it would buy out public shareholders at a price not exceeding 1,000 per share, an 11% premium to Monday's stock closing price of Rs 901.8. The buyout will give Walt Disney control over five businesses.
UTV Software, a holding company, makes and distributes movies, broadcasts a clutch of movie and entertainment channels, produces content for television and other digital media, and also has a presence in gaming.
It operates through a number of subsidiaries, including movie production under UTV Motion Pictures, Indiagames, andUTV Global Broadcasting that broadcasts entertainment and movie channels. All these will become part of Walt Disney's Indian unit once the transaction is completed.
Following the news of the buyout, one of the biggest in India's media and entertainment industry, the company's stock closed at Rs 950.45, or 5.39% higher, on the Bombay Stock Exchange on Tuesday.
Disney said it would also buy the 20% stake held by promoter Rohinton (Ronnie) Screwvala and his associates if it garnered enough shares to delist the company. It, however, said delisting of a public company in India was a long process and could take several months to complete.
"Given the multiple stages and the nature of the process, a successful outcome is uncertain," it added.
The entertainment behemoth also said if the delisting went through, Screwvala would cease to be the chairman and managing director ofUTV Software Communications and become the managing director ofThe Walt Disney Company India, responsible for overseeing Indian businesses of theDisney Group.
Mahesh Samat, currently managing Disney's assets in India, will become chief operating officer, reporting to Screwvala. The statement did not say what would happen if the response to the open offer was insufficient to delist the company. Disney's statement merely said if the delisting was unsuccessful, it would "consider the full range of strategic options".
Farokh Balsara, partner & national leader, media & entertainment practice, at consultant Ernst & Young, said the deal illustrated the potential of the Indian movie and entertainment market. "It is an endorsement of the potential international companies see in the robust Indian entertainment and media sector. UTV and Disney are similar businesses and the acquisition will help Disney synergise its Indian operations. These are some of the bets international companies are making in the fast-growing Indian market."
India is the world's third-largest TV market trailing China and the US with nearly 138 million TV households, according to a March 2011 report by KPMG and industry lobby FICCI. The media and entertainment industry is likely to expand 14% annually until 2015, with segments such as TV, gaming and animation expected to outpace the industry growth, the report said.
July box-office record: Bollywood rakes in Rs 210 crore
MUMBAI: No July in Bollywood's box-office history has raked in as much profits as this month has. Peg it to the youthful appeal ofDelhi Belly andZindagi Na Mile Dobara or the bloody rage ofMurder 2 and Singham, but July 2011 brought business worth Rs 210 crore.
Suniel Wadhwa, independent distributor and box office analyst says, "After the box office hit record levels in June with Ready, Double Dhamaal, the good times continued to roll in July. At Rs 210 crore net box office collections, it was the highest-grossing July ever seen in the history of Bollywood, jumping over by 80% from July 2010." and recording an increase of 105% compared to an average six-monthly January-June 2011 monthly box office.
While Salman Khan's Ready contributed to about 40% of the box office collection in the first half of 2011, the collection of July is about 26% of the total of the first half of 2011. The adult certification to films didn't stop audiences from going to cinema halls for Aamir Khan's Delhi Belly and Mohit Suri's Murder 2. Buddhah Hoga Tera Baap was a treat for Amitabh Bachchan fans.
Both producers and exhibitors were worried about the performances of two films-Zindagi Na Milegi Dobara andHarry Potter which released after the 13/7 terror attack. The audiences surprised them all with Zindagi Na Milegi Dobara breaking the previous week release Murder 2's first weekend record and Harry Potter with nearly 80% opening on the first day.
Says Trade analyst Taran Adarsh, "Every film that released in July has broken the previous releases' weekend opening record, from Ready to Singham. This month has broken the myth about audience spending in the first half of the month but this month has been just the opposite. The weekend collection of this month has been nothing less than Rs 120 crore for all the six films and biggest surprise has been the weekday collection at times has beaten the weekend business which one considered to be the time of business of cinema.''
Prices of film tickets have gone up by at least 15% in the last one year but that did not stop the audiences from walking into cinema halls. both multiplexes and single screen cinemas
Theatres all over the country achieved their target even before the month ended. Vishal Anand, head of operations, Fun Cinemas, said, "Most multiplexes achieved their target in the first three weeks of the month and the business that came from the films in the last part was only surplus.
The tone for July was set on the first day of the month itself with Delhi Belly making the cash tills ring. It has been the highest month for cinema sales ever for us at Fun cinemas. The trend continued with Transformers, Bbuddah Hoga Tera Baap and then the biggies like ZNMD and Harry Potter," he said. It just blew everyones sales imagination with a good support by Delhi Belly in the 3rd week also.Singham supported the cinemas too. We expected sales to be stronger than June but this has surpassed our expectations. July has been more than 40 per cent than June, which had the highest sales record only to be broken after four weeks only.''
Suniel Wadhwa, independent distributor and box office analyst says, "After the box office hit record levels in June with Ready, Double Dhamaal, the good times continued to roll in July. At Rs 210 crore net box office collections, it was the highest-grossing July ever seen in the history of Bollywood, jumping over by 80% from July 2010." and recording an increase of 105% compared to an average six-monthly January-June 2011 monthly box office.
While Salman Khan's Ready contributed to about 40% of the box office collection in the first half of 2011, the collection of July is about 26% of the total of the first half of 2011. The adult certification to films didn't stop audiences from going to cinema halls for Aamir Khan's Delhi Belly and Mohit Suri's Murder 2. Buddhah Hoga Tera Baap was a treat for Amitabh Bachchan fans.
Both producers and exhibitors were worried about the performances of two films-Zindagi Na Milegi Dobara andHarry Potter which released after the 13/7 terror attack. The audiences surprised them all with Zindagi Na Milegi Dobara breaking the previous week release Murder 2's first weekend record and Harry Potter with nearly 80% opening on the first day.
Says Trade analyst Taran Adarsh, "Every film that released in July has broken the previous releases' weekend opening record, from Ready to Singham. This month has broken the myth about audience spending in the first half of the month but this month has been just the opposite. The weekend collection of this month has been nothing less than Rs 120 crore for all the six films and biggest surprise has been the weekday collection at times has beaten the weekend business which one considered to be the time of business of cinema.''
Prices of film tickets have gone up by at least 15% in the last one year but that did not stop the audiences from walking into cinema halls. both multiplexes and single screen cinemas
Theatres all over the country achieved their target even before the month ended. Vishal Anand, head of operations, Fun Cinemas, said, "Most multiplexes achieved their target in the first three weeks of the month and the business that came from the films in the last part was only surplus.
The tone for July was set on the first day of the month itself with Delhi Belly making the cash tills ring. It has been the highest month for cinema sales ever for us at Fun cinemas. The trend continued with Transformers, Bbuddah Hoga Tera Baap and then the biggies like ZNMD and Harry Potter," he said. It just blew everyones sales imagination with a good support by Delhi Belly in the 3rd week also.Singham supported the cinemas too. We expected sales to be stronger than June but this has surpassed our expectations. July has been more than 40 per cent than June, which had the highest sales record only to be broken after four weeks only.''
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