14 Nov 2006
Dubai: Zee Telefilms is to acquire a 50 per cent stake in the Dubai-based sports channel Ten Sports with an investment of Dh420 million ($114 million), based on an enterprise value, a company statement said.
"This is a great strategic move for Zee that reinstates Zee's seriousness and belief in the genre of sports broadcasting. Ten Sports is the leading sports channel in the Indian sub continent with the highest viewership amongst sports channels," the statement said.
Ten Sports has rights to leading cricket properties like Pakistan Cricket Board, Sri Lanka Cricket Board and the West Indies Cricket Board. These rights combined with the BCCI neutral venue rights that Zee Sports has, creates the single largest repertoire of cricket programming.
Subhash Chandra, chairman, Zee Telefilms, said: "This acquisition is an important step for Zee towards consolidation in the media industry. We are confident that this will add significant value for the shareholders of Zee. The acquisition of a stake in Ten Sports not only gives us a strong foothold in the arena of sports broadcasting across Asia but also strengthens our operations in the Middle East."
Abdul Rahman Bukhatir, the promoter of Ten Sports said: "Sports television is an extremely challenging business, and yet we have in a short time established ourselves as a major player. I believe that we will now take Ten Sports to unprecedented heights by joining hands with Zee Network. I have the utmost respect for him as a business man and I have been very impressed by the leadership position he and his team have staked out in every line of the media business, from content to cable to DTH to international. Ultimately, I see our partnership as one which will change the industry."
Zee Sports and Ten Sports will be able to draw significant amounts of synergy from each other in operating in the Asian market. Moreover, this move would consolidate the number of sports broadcasters in the region, thereby bringing about a price correction in the burgeoning rights fees for various sports properties.
Zee Network already has a major presence in the Middle East through its regional arm Real Media. The network has a dedicated Middle East beam for Zee TV.
By Staf Reporter
Gulf News 2006. All rights reserved.
