Saregama, a music label owned by RP-Sanjiv Goenka Group, has announced the acquisition of a 51.8% majority stake in digital entertainment company, Pocket Aces Pictures Pvt Ltd, for ₹174 crore in an all-cash deal. The company also plans to acquire an additional 41% stake in the next 15 months at pre-agreed multiples.
What Happened? This strategic acquisition aims to bolster Saregama’s ambition to lead in new music across all Indian languages.
Pocket Aces specializes in youth-focused digital content, holding an extensive IP catalogue, including web series, sketches, music videos, and reels, and manages over 100 digital influencers through its talent management arm, Clout.
The acquisition will allow Saregama to leverage Pocket Aces' distribution network of over 95 million followers to popularize its music library among the 18-35 age demographic and create synergies across artiste and influencer management and long-format video creation businesses.
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Avarna Jain, vice chairperson of Saregama, emphasized that this partnership would bring new dimensions to their business by tapping into the burgeoning young digital audiences.
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Saregama is also expanding its offerings with new versions of its successful wireless speakers, Carvaan, and focusing on regional cinema through its movie production arm, Yoodlee Films, to cater to diverse audience segments. The company is exploring live shows and concerts to enhance the monetization opportunities of its owned intellectual properties and is collaborating on various projects with notable names in the industry.
Price Action: Saregama India Ltd shares were trading 0.43% lower at ₹366.60 on Friday morning, shortly after markets opened for trading.
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