Disney To Buy Indian TV Channel For $ 30.5 Million

Walt Disney Co. on Tuesday announced its plans to buy Hungama, an Indian children's television channel that broadcasts in Hindi. The $44.5 million deal includes a stake in UTV Software Communications Ltd as well.
The Burbank, California-based company said that under the deal, Walt Disney Company India Ltd will acquire a 100 percent stake in Hungama TV for $30.5 million and an equity stake of 14.9 percent in UTV Software Communications Ltd. However, officials clarified that both the transactions are subject to regulatory approvals.
“The acquisition of Hungama TV and the investment in UTV will significantly diversify our presence in India,” Walt Disney International President Andy Bird said at a press conference in Mumbai.
Disney, launched in Dec 2004, already operates a Disney Channel and Toon Disney/Jetix in India, which reaches over 30 million homes on cable and satellite.
UTV said Disney would be issued 3.4 million shares of UTV Software Communications at 192.5 rupees ($4.11) each.