Walt Disney Co. Southeast Asia Pte Ltd will invest Rs. 1,000 crore by way of foreign equity in Walt Disney’s India operations for expansion of the business and making downstream investment in other companies and subsidiaries, including those in broadcasting.
Based on the recommendations of the Foreign Investment Promotion Board (FIPB) in its meeting held on 27 July, the government approved 10 foreign direct investment (FDI) proposals worth close to Rs. 1,260 crore, of which Walt Disney’s was the largest at Rs. 1,000 crore. Ronnie Screwvala, managing director of the Walt Disney Co. India, could not be reached for comment on the infusion of fresh funds.
Earlier this year, Walt Disney Co. completed the acquisition of UTV Software, the Mumbai-based media and entertainment firm promoted by Screwvala. Disney already owned 50.44% in the company before it made the offer for 100% control in August last year. The deal was was valued at $450 million. When it acquired UTV Software, Disney was already running three children’s channels in India — Disney Channel, Disney XD and Hungama. The UTV Software acquisition gave Walt Disney access to a handful of entertainment channels and a film production company run by Screwvala. It also acquired UTV’s gaming business.Source: livemint.com