Universal Music to buy 30% in Excel Entertainment

Mumbai: Universal Music India on Monday said it will pick up 30 per cent equity stake in film and digital content studio Excel Entertainment, valuing the Ritesh Sidhwani and Farhan Akhtar-founded firm at Rs 2,400 crore. The deal, announced in presence of Akhtar’s lyricist father Javed Akhtar and Maharashtra Chief Minister Devendra Fadnavis, provides the foundation for “a new strategic partnership” between Universal Music India and Excel Entertainment to accelerate the latter’s growth and enhance the former’s position in the Indian market, it said. Noting that Excel Entertainment has a strong track record in music, the statement said the Universal Music Group will gain global distribution rights for all future original soundtracks created for projects owned or controlled by Excel Entertainment as part of the deal. The alliance also includes the launch of a dedicated ‘Excel music’ label, which will be distributed globally by the Universal Music Group, it said, adding that the Universal Music Publishing Group will also become Excel’s exclusive music publishing partner. The deal announcement comes amid a spike in large stake buys in Bollywood production houses, including industrialist Adar Poonawalla picking up a 50 per cent stake in Karan Johar’s Dharma Productions for Rs 1,000 crore and the more recent announcement of a 28 per cent stake buy by Saregama India in Sanjay Leela Bhansali’s company for Rs 325 crore. Universal Music India Chairman and Chief Executive Devraj Sanyal will join Excel’s board, and Sidhwani and Akhtar will continue to shape creative direction and content decisions, the statement said.