Zee Entertainment Enterprises Limited (Zeel) has called off the deal to acquire 9X Media Private Limited and its subsidiaries from New Silk Route and other shareholders. As per a BSE filing by the broadcast company, it had on October 6, 2017 announced the acquisition of 100% equity stake in two media entities - 9X Media Private Limited and INX Music Private Limited (9X entities).
The company informed that the acquisition deal has been called-off due to non-completion of certain material conditions precedent.
The agreement to acquire these entities for an all cash consideration of Rs 160 crore was announced in late 2017.
9X Media, along with its subsidiaries, operates a bouquet of six music channels - 9XM (Latest Bollywood), 9X Jalwa (Evergreen Hindi), 9X Jhakaas (Marathi), 9X Tashan (Punjabi), 9XO (English), 9X Bajao (Hindi Classics). On completion of the acquisition, these channels would have been added to ZEEL’s current portfolio of 33 channels. The acquisition was in line with the ZEEL’s strategy to cater to diverse audience by offering targeted products. Besides significantly expanding its Hindi music portfolio, it would also have given ZEEL access to the regional music genre, increasing its regional footprint with foray into the Punjabi market.
9X Media’s bouquet of channels have established a strong viewership on the back of the unique brand identity created over the years. In addition to strengthening ZEEL’s television bouquet, these channels would have complemented the music label and movie production businesses. 9X Media’s popular Bollywood news portal, SpotboyE, was also a part of the transaction. The Company is confident of utilizing network synergies to bring down the costs and significantly improve the profitability of these channels.