Universal Music India on Monday said it will pick up a 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.
A division of Universal Music Group (UMG), a world leader in music-based entertainment, Universal Music India (UMI) said it has entered into a definitive agreement with Excel Entertainment for the proposed transaction.
What led to the acquisition?
“Under the agreement, which values Excel at Rs 2,400 crore (euro 257 million), UMI will become a significant minority shareholder in Excel with a 30 per cent equity stake,” UMI said in a statement.
The deal will provide the foundation for a new strategic partnership between UMI and Excel to accelerate Excel’s growth and further enhance UMI’s position in the Indian market, it added.
As part of the agreement, Devraj Sanyal, Chairman and CEO of Universal Music India & South Asia and SVP of Strategy, Africa, Middle East and Asia, will serve on Excel Entertainment’s Board of Directors. Excel founders Ritesh Sidhwani and Farhan Akhtar will continue to shape the company’s creative direction and content decisions.
Under the agreement, UMG will gain global distribution rights for all future original soundtracks created for projects owned or controlled by Excel. The alliance also includes the launch of a dedicated Excel music label, which will be globally distributed by UMG.
Universal Music Publishing Group will also become Excel’s exclusive music publishing partner, creating opportunities for existing UMG and UMI artists and repertoire to be included in Excel’s future productions.
Commenting on the deal, Adam Granite, UMG CEO for Africa, Middle East and Asia (AMEA), said the announcement further strengthens UMG’s position in India, a dynamic and strategically important music market for the group globally.
By investing in and partnering with Excel Entertainment, UMG will be uniquely positioned to contribute from the earliest stage to Excel’s future endeavours and throughout the creative process, providing benefits to both parties, he added.
Founders of Excel Entertainment
Excel Entertainment founders Ritesh Sidhwani and Farhan Akhtar said India’s entertainment landscape continues to grow from strength to strength, making this the right time to build meaningful global collaborations.
The partnership with UMG will be a “truly creative and transformative alliance” that unlocks fresh opportunities for artists and repertoire across music, film and emerging formats, they added.
Founded in 1999, Excel Entertainment has released more than 40 films, beginning with the 2001 blockbuster Dil Chahta Hai, along with several original scripted series. The founders have together received over 60 entertainment industry awards and accolades.