Eros to buy Bollywood global TV channel
By Patrick Frater
Wed, 25 April 2012, 07:30 AM (HKT)
The company was a co-founder, along with steel tycoon Lakshmi MITTAL, of B4U which was launched in 1999. It currently owns 24% of the company and will be buying up the majority stake from investors Connaught Sales Company, Lotus Global Investments, Faithful Holding and Millom Corporation. The deal includes B4U's $19 million cash pile and is structured so that Eros pays for the balance using its shares over a two year period.
B4U currently operates two digital television channels, B4U Music and B4U Movies, and is distributed in over 100 countries. It earns its revenues from satellite service providers' subscription fees and from advertising in India. Eros says there is room to expand both. In the year to March 2011, B4U has net income of $2.5 million and finished the year with net assets of $28.7 million.
Over time, B4U has added on talent auditions, a print magazine and occasionally co-invested in film production.
Eros, which is currently listed in the UK, will transfer its share listing to the New York Stock Exchange from early May.
Deshpande makes Eros comeback
Veteran executive appointed as CEO
Eros to peddle Peddlers
India's Critics Week entry finds local distribution
Coote on board as Eros switches listing
Indian distrib giant heads to New York, profits up
India opens distrib'n sector to national players
Ruling forces removal of regional obstacles
Punjabi films on agenda for Eros
Shergill signs producer deal with Indian major
Tanu revisits Manu mismatch
Sequel gets green light
Korea Telecom dials up Bollywood deal
50 title package signed for multi-platform distribution
Eros, Vistaar board Mausam
Family film is now shooting in Scotland