You will be redirected back to your article in seconds

Disney nabs majority stake in UTV

Company acquires additional 23%

Disney has taken majority ownership of its Indian partner UTV Software Communications but will remain a junior partner in the running of the company.

Disney and the founders of UTV Software together acquired an additional 23% of UTV Software shares in an open offer conducted by Goldman Sachs. The move gave Disney more than 50% of the company and lifted their combined holding to 83%.

In February, the Mouse House paid $190 million raise its holding from 14% to 32% — a move that automatically triggered an open offer for the company. Minority shareholders might not have accepted the offer, but the recent stock market slump made it attractive for them to sell.

In a related agreement between Disney and UTV Software founder and CEO Ronnie Screwvala, Disney has agreed not to vote the shares acquired in the open offer for four years, until November 2012. Disney keeps an unchanged three seats on the 12-person board of directors. Agreement potentially allows Screwvala to buy back Disney’s holding of UTV Software shares to the point that he and the U.S. studio have equal ownership.

The share acquisition reps the first time a Hollywood studio has taken a majority interest in a Bollywood major.

“While we have an increased economic interest in UTV than before, it’s important not to confuse any voting rights with economic rights,” a Disney spokesman told Daily Variety. “UTV remains the leading multimedia entertainment company in India across movies, broadcasting, TV production, online, mobile and gaming. We have confidence in Ronnie, in UTV and in the growth of India to continue to truly value our stake in UTV.”

More Biz

  • Ozzy Osbourne Drops Lawsuit Against AEG

    Ozzy Osbourne Drops Lawsuit Against AEG

    Disney has taken majority ownership of its Indian partner UTV Software Communications but will remain a junior partner in the running of the company. Disney and the founders of UTV Software together acquired an additional 23% of UTV Software shares in an open offer conducted by Goldman Sachs. The move gave Disney more than 50% […]

  • Analysis: Sky Win Boosts Comcast as

    Analysis: Sky Win Boosts Comcast as Global Streaming Wars Heat Up

    Disney has taken majority ownership of its Indian partner UTV Software Communications but will remain a junior partner in the running of the company. Disney and the founders of UTV Software together acquired an additional 23% of UTV Software shares in an open offer conducted by Goldman Sachs. The move gave Disney more than 50% […]

  • Chrissy Teigen Target collection shop online

    Chrissy Teigen's New Target Collaboration to Launch in Late September

    Disney has taken majority ownership of its Indian partner UTV Software Communications but will remain a junior partner in the running of the company. Disney and the founders of UTV Software together acquired an additional 23% of UTV Software shares in an open offer conducted by Goldman Sachs. The move gave Disney more than 50% […]

  • Dana Spector Joins CAA

    Dana Spector Joins CAA

    Disney has taken majority ownership of its Indian partner UTV Software Communications but will remain a junior partner in the running of the company. Disney and the founders of UTV Software together acquired an additional 23% of UTV Software shares in an open offer conducted by Goldman Sachs. The move gave Disney more than 50% […]

  • ALLENTOWN, PA - SEPTEMBER 08: Elton

    Elton John and Universal Music Announce New Multi-Level Agreement

    Disney has taken majority ownership of its Indian partner UTV Software Communications but will remain a junior partner in the running of the company. Disney and the founders of UTV Software together acquired an additional 23% of UTV Software shares in an open offer conducted by Goldman Sachs. The move gave Disney more than 50% […]

  • Sarah Jessica Parker Gap

    Sarah Jessica Parker Unveils Second Collaboration With Gap

    Disney has taken majority ownership of its Indian partner UTV Software Communications but will remain a junior partner in the running of the company. Disney and the founders of UTV Software together acquired an additional 23% of UTV Software shares in an open offer conducted by Goldman Sachs. The move gave Disney more than 50% […]

More From Our Brands

Access exclusive content