New Delhi, Jan. 5 -- Universal Music Group's (UMG's) India arm has agreed to acquire a 30% stake in Farhan Akhtar and Ritesh Sidhwani founded Excel Entertainment at an enterprise valuation of Rs 2,400 crore (around $266 million).
The strategic partnership aims to accelerate Excel's growth and strengthen UMG's presence in the Indian entertainment market, according to a press note.
Under the agreement, Universal Music Group (UMG) will secure global distribution rights for all future original soundtracks from Excel projects and launch 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 UMG's and Universal Music India's (UMI's) artists to feature in Excel's future productions.
Devraj Sanyal, Chairman and CEO of Universal Music India & South Asia, will join Excel's board as part of the deal, while Akhtar and Sidhwani will continue to lead creative direction and content decisions.
Founded in 1999, Excel Entertainment has produced over 40 films and original scripted series, beginning with Dil Chahta Hai in 2001. Its portfolio includes hits such as Lakshya, Don, Zindagi Na Milegi Dobara, Fukrey, Dil Dhadakne Do, and Gully Boy.
The studio also produced Inside Edge, which got an International Emmy nomination for Best Drama.
Published by HT Digital Content Services with permission from VC Circle.