Universal Studios looks to join Excel Entertainment cast with stake buy

This comes hot on heels of Poonawalla-Dharma deal

Comcast Corp’s Universal Studios is in discussions with Excel Entertainment, the Indian movie production powerhouse founded by Farhan Akhtar and Ritesh Sidhwani, for a potential stake in the company, according to sources within merchant banking. If the deal goes through, it could involve anything from a minority stake up to a 50 per cent share, primarily through new capital infusion, said those aware of the development.

 

An e-mail to Excel Entertainment and a query directed to co-founder Sidhwani did not elicit a response. Comcast also did not respond to email requests for comment. 

The discussions with Excel come shortly after Serene Productions of Adar Poonawalla, CEO of Serum Institute of India, acquired a 50 per cent stake in Karan Johar’s Dharma Productions for approximately Rs 1,000 crore, largely through fresh capital infusion. The Poonawalla-Dharma deal has stirred debate among analysts who note a rising demand for capital in privately-owned production houses as they navigate the pressures of scaling up amid escalating costs of movies. 

Private equity insiders observe an increase in production houses seeking investment, largely to expand operations while retaining creative independence. “We’re seeing a lot of production houses approaching us for funding. Most of them are looking to scale up by producing a larger slate of films, including high-budget projects, which necessitates substantial capital infusion,” said the top executive in a mid-sized media and entertainment fund. 

Universal Studios, a Hollywood mainstay, is owned by Comcast through its NBCUniversal subsidiary. Comcast, with previous India-focused ventures, notably attempted a 51 per cent acquisition of Zee Entertainment for approximately Rs 19,000 crore in 2019, though the deal ultimately fell through. 

Universal has long been interested in expanding its footprint in India. Past initiatives include a plan with Reliance ADA Group to develop a $1.5 billion theme park, which was later shelved. The studio has also explored Hindi film production, in line with competitors, such as Sony Pictures, Fox Star Studios, and Walt Disney, and a collaboration with Excel could position Universal for further integration into Bollywood. 

Despite a robust legacy, Excel Entertainment remains modest in scale compared to industry giants. In FY23, Excel generated Rs 44 crore in revenue. It’s bigger peers include the likes of Dharma Productions (whose revenue nearly halved to Rs 520 crore in FY24 and profit plunged), Yash Raj Films (a revenue of Rs 1,523 crore and profit of Rs 121 crore), T-Series (a movie business revenue of Rs 909 crore), and Viacom18 (Rs 1,300 crore in movie-related revenue). 

Founded in 1999, Excel gained critical acclaim with the 2001 hit Dil Chahta Hai. This year, it partnered with Amazon Prime Video for a series of upcoming releases, including Don 3, Ground Zero, Agni, and Yudhra. Additionally, Excel signed with Amazon MGM Studios to bring its popular streaming series Mirzapur to theatres.    Multi-starrer 

The deal could involve anything from a minority  to 50 per cent stake

Universal has long been interested in expanding its footprint in India  This comes weeks after Adar Poonawalla’s Serene Productions acquired 50% in Karan Johar’s Dharma Productions