Zee Entertainment Enterprises Limited (ZEEL), in a board meeting, has approved the move of acquiring an additional 45 per cent stake in its subsidiary Taj TV, Mauritius, from the Dubai-based Bukhatir Group.
So far, ZEEL had 50 per cent stake in Dubai-based Taj TV, which it had acquired for $114 million in 2007. Taj TV owns Ten Sports, a sports channel beamed across India, West Asia, Pakistan, Sri Lanka, Bangladesh and Hong Kong.
Together, the all-cash deal was worth $44.15 million.
He adds that the group is looking at introducing niche and high-end sports on one of the two sports channels. Each channel will continue to have dedicated teams working on it.
Taj TV holds the rights to air over 100 days of international cricket every year, through cricket properties such as the Pakistan Cricket Board, Sri Lanka Cricket Board, West Indies Cricket Board, South Africa Cricket Board and Zimbabwe Cricket Board. Ten Sports also holds rights to the UEFA Champions League Soccer, WWE wrestling, US Open Tennis and Hockey World Cup.
ZEEL reported consolidated revenues of Rs 5,309 million in the third quarter of FY2010. The consolidated operating profit for the third quarter of the present financial year has been reported at Rs 1,573 million.
Chandra adds, "Zee's performance over the last couple of quarters is reflective of its ability to grow viewership and revenues, even under difficult market conditions. Now that the economy and sentiments have improved, we will continue building our product portfolio for creating value in the long-term."