General News: ZEEL’s purchase of 9X Media, valuations and impact on music TV genre

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[Image: 4E6m2yS.jpg]MUMBAI: Zee Entertainment Enterprises Ltd (ZEEL) will buy 9X Media for around Rs 170 crore as part of a broader plan to build a strong vertical around music channels, music labels and film production across languages. The FM radio business, being acquired by sister company Zee Media Corporation Ltd (ZMCL) from Anil Ambani’s Reliance Broadcast Network, will further provide a strategic fit to the group’s growth plans.

The deal is attractive on valuation terms as the price is one-time 9X Media’s sales, a source said. 9X Media, which runs a slew of music channels, has an annual turnover of around Rs 170 crore.

“In FY17, revenue fell due to demonetisation but normalised revenue is around Rs 170 crore,” the source said.

Though 9X Media has a marginal loss, it will be profit neutral for ZEEL due to the network strength, the source added.

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