Zee Entertainment Enterprises Limited (ZEEL)has entered a definitive agreement to acquire 9X Media and its subsidiaries from Rivendell PE LLC and other shareholders through an all-cash transaction amounting to Rs 160 crore.
Led by Punit Goenka, ZEEL has strengthened it's music portfolio with this latest agreement.
9X Media, at present, operates 5 music channels - 9XM (Hindi), 9X Jalwa (Hindi), 9X Jhakkas (Marathi), 9XO (English) and 9X Bajao (Hindi). The acquisition also includes INX Music- a subsidiary of 9XM engaged in the business of broadcasting a Punjabi music channel 9X Tashan.
9XM owned a majority stake of 70.85 per cent in INX Media.
Besides significantly expanding its Hindi music portfolio, the acquisition gives ZEEL access to the regional music genre. It also increases its regional footprint with its foray into the Punjabi market.
9X Media's consolidated revenue for FY17 stood at Rs 158.6 crore and it posted an EBITDA loss of Rs 5 crore.
In addition to acquiring 9X, ZEEL also bought Turner's 26 per cent in the distribution joint venture between the companies at par value of Rs 2.6 lakh.