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The regional broadcasting segment is abuzz with merger and acquisition deals. Media firm Zee Entertainment Enterprises Ltd (ZEEL) said on Wednesday that it has acquired Odia general entertainment channel Sarthak for ₹115 crore. This comes a few months after Star India acquired four Telugu channels of Maa Television network for an undisclosed sum.
Post the deal to acquire Sarthak, Punit Goenka, MD and CEO of ZEEL, said: “The acquisition of an already profitable, market leading venture is going to be a value accretive investment in line with our philosophy of enhancing shareholder value. Sarthak will further add to our formidable bouquet of 33 channels in the domestic market.”
The all-cash acquisition shall be from current shareholders of Sarthak Entertainment Private Ltd, subject to regulatory approvals.
With this buy, ZEEL enters the rapidly expanding regional market in Odisha’s general entertainment category. Sarthak TV airs successful reality and non-fiction shows, besides being the market leader in the fiction segment. This would complement ZEEL’s regional bouquet of channels, including Zee Marathi, Zee Talkies, Zee Bangla, Zee Bangla Cinema, Zee Telugu, Zee Kannada and Zee Tamizh. The company’s shares rose marginally to close at ₹375.75 on the BSE on Wednesday.
Sitaram Agrawalla, Founder-MD, Sarthak Group, said: “ZEEL will provide the platform for Sarthak to grow further. With a history of successful operations, we are sure Sarthak will be a great value-add for ZEEL.”
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