Utv Set To Buy Internet Company

The Ronnie Screwvala-promoted Rs 175 crore UTV is close to clinching the acquisition of an Internet company, one of the few it has earmarked for merger or acquisition.

"The first deal should be signed and in the bag within two weeks," UTV chairman Ronnie Screwvala told Business Standard yesterday. The M&A deals are likely to cost UTV about $45 million.

Screwvala said the company has decided to focus on three areas for M&As: broadcasting, Internet and animation. "For M&A activity in animation, we are focusing on Southeast Asian countries. Content providers should have a pan-Asian profile," he said.

UTV has lined up investments of Rs 75 crore to 100 crore on an international basis over the next 18 months for expansion.

Speaking about the Internet business, Sudhanshu Sarronwala, head of new media, said UTV is developing a streaming portal under the brand name of sharkstream.com with emphasis on music and radio. "The idea is to become the gateway to various other portals through hyperlinks after doing some value-additions," Sarronwala said.

Screwvala said UTV would also be looking at venture capital funding for its Internet businesses.

"In one year's time we are looking at venture capital funding of $25 million to 30 million," he explained, adding, "Our main objective at the moment is to satisfy the huge Indian expat population through our Net projects."

UTV plans to consolidate all its subsidiaries into a pan-Asian media,entertainment and Internet company by March 15. "This is a prelude to going public in the domestic market by June 2000," Screwvala said. This is likely to be followed by listings on Southeast Asian exchanges.