Zee Entertainment Enterprises is acquiring the General Entertainment Broadcasting Business Undertaking of Reliance Big Broadcasting, Big Magic & Azalia Broadcast, all part of Anil Ambani-led Reliance Group Entities.
The proposed transaction is intended to be done through a scheme of demerger and execution of definitive agreements in relation to such proposed acquisition.
The TV Broadcasting business of Reliance Group Entities currently comprises two operational general entertainment channels (“BIG Magic” and “BIG Ganga”) and four other TV licenses.
BIG Magic is a Comedy channel catering to Hindi Speaking Markets. BIG Ganga is a leading Bhojpuri entertainment channel catering to audiences in Bihar, Jharkhand and Purvanchal. The channels are available on all major MSOs and DTH operators.
The General Entertainment TV Broadcasting business undertaking along with its assets, liabilities, licenses, trademarks etc. shall get demerged from BIG Magic, Reliance Big Broadcasting and Azalia Broadcast into Zee through a court-approved scheme.
“BIG Magic gives us access to comedy genre enhancing our customer offerings. BIG Ganga, a leading Bhojpuri channel syncs with our strategy of expanding into the regional markets which offers attractive growth potential,” said Punit Goenka, CEO of Zee. “I am confident that these two channels will make the ZEE Network channels more enriching for the audience and for the company.”
Sam Ghosh, Group CEO of Reliance Capital said this transaction is part of their strategy to reduce exposure in non-core businesses and work towards further reducing debt.