NEW DELHI: Universal Music India on Monday said it will pick up 30 per cent equity stake in film and digital content studio Excel Entertainment, valuing the Ritesh Sidhwani and Farhan Akhtar founded firm at Rs 2,400 crore.
A division of Universal Music Group (UMG), a world leader in music-based entertainment, Universal Music India (UMI) said it has entered into a definitive agreement with Excel Entertainment for the proposed transaction.
“Under the agreement, which values Excel at Rs 2,400 crore (euro 257 million), UMI will become a significant minority shareholder in Excel with a 30 per cent equity stake,” UMI said in a statement.
The deal will provide the foundation for a new strategic partnership between UMI and Excel to accelerate Excel’s growth and further enhance UMI’s position in the important Indian market, it added.
Devraj Sanyal, chairman-CEO, Universal Music India & South Asia and SVP of Strategy, Africa, Middle East and Asia, will serve on Excel Entertainment’s Board of Directors as part of the agreement.
Excel founders Ritesh Sidhwani and Farhan Akhtar will continue to shape creative direction and content decisions, the statement said.
As per the agreement, UMG will gain global distribution rights for all future original soundtracks created for projects owned or controlled by Excel.
The alliance also includes the launch of a dedicated Excel music label, to be globally distributed by UMG, it added.
Universal Music Publishing Group will also become Excel’s exclusive music publishing partner, creating opportunities for existing UMG and UMI artists and repertoire to be included in Excel’s future productions.
UMG CEO of Africa, Middle East and Asia (AMEA), Adam Granite said, “Today’s announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally.”
Excel Entertainment Founders Ritesh Sidhwani and Farhan Akhtar said India’s entertainment landscape continues to grow from strength to strength, and this is the perfect moment to build meaningful global collaborations.
Excel was founded in 1999 by Ritesh Sidhwani and Farhan Akhtar, who between them have garnered 60 entertainment industry awards and accolades. The studio has released more than 40 films, beginning with 2001 blockbuster ‘Dil Chahta Hai’, and original scripted series shows.