Disney, Sun's FM radio arm get FIPB nod

Disney gets clearance to enter distribution, marketing and advertising of motion pictures of the Disney Group in the home entertainment segment.

Walt Disney India, a leading broadcaster of kids’ channels, and Kalanithi Maran's FM radio arm, South Asia FM, have obtained necessary clearances from the Foreign Investment Promotion Board (FIPB) for expansion and an increase in foreign investment, respectively.

FIPB has given its nod to a proposal from Walt Disney India to foray into distribution, marketing and advertising of motion pictures of the Disney Group in the home entertainment segment. Disney will also look at publishing speciality books for children and families to expand the brand presence of Walt Disney beyond the TV channels, Toon Disney and Disney. The company has indicated to the FIPB that foreign investment will not be brought in for expansion.

For its expansion Mauritius-based South Asia Multimedia Technologies is set to increase its stake in the Kalanithi Maran’s FM radio arm, South Asia FM, from 6.98 per cent to the permissible 20 per cent. The FIPB has approved an application submitted by South Asia FM, a subsidiary of Sun TV, the channel owned by Kalanithi Maran.

Sun TV owns 64.12 per cent in South Asia FM. Its stake in the radio arm is likely to come after this exercise. Sun TV Network operates its FM radio business through South Asia FM and Kal Radio. The Network has the permission to operate 45 private FM stations in the country, the highest by a single company.

South Asia FM is looking to raise money to fund the radio business across all its stations, industry sources said. South Asia Multimedia is likely to purchase the existing equity shares of South Asia FM or will subscriber to fresh equity. The company, however, has not indicated the foreign investment that may come in as a result of South Asia Multimedia increasing its stake.