COMMUNITY


UTV to buy 2 US-based media companies

By a Correspondent

New York: Mumbai-based UTV Software Communi-cations Ltd., is in the process of acquiring two US-based companies in the mobile content aggregation and online gaming space for $30 million.
The company, in fact, has earmarked a total investment of $75 million into the gaming business. Apart from $30 million for acquisition, UTV will put in $8 million to increase its stake in UK-based Ignition Entertainment from 70 percent to around 95 percent. For developing three high-end console games, UTV will pump in $37 million.
“The acquisition price for the two US-based companies will be $30 million. It will take us 3-4 months to complete the deal. We plan to invest a total of $75 million into the gaming business,” says UTV chairman and CEO Ronnie Screwvala.
UTV will enter into an MoU and conduct due diligence to acquire a 51 percent stake in one of the top tier mobile content aggregator in the US through one of the company’s subsidiary, Indiagames Ltd. UTV shall fund this acquisition by subscribing fresh shares of Indiagames. UTV currently holds 56 percent in Indiagames, which could go up to 70 percent.
UTV is investing into a start-up venture in the US, which caters to the growing online gaming segment. It will set up online creation of content and a publishing platform.
UTV will invest into the working capital of Ignition for its three high-end console games being developed at its facilities in London, Florida and Tokyo. “The games will be released in the next one year,” says Screwvala.