Pugazhbalaji
Member
- Joined
- 21 Dec 2011
- Messages
- 3,515
- Reaction score
- 930
RE: CONFIRMED : D2h Merging with DISH
I don't think so
I don't think so
- Thread starter Sateesh_Hyd
- Start date
- Replies: Replies 58
- Views: Views 17,779
- Joined
- 15 Sep 2015
- Messages
- 1,223
- Reaction score
- 1,977
Dishtv, Videocon d2h final Stages for merger Deal
Dish TV is in the final stages of acquiring Videocon D2H to create India’s largest direct-to-home (DTH) player with almost 45 percent market share.
The swap ratio is expected to be 4:5, which means that for every 5 shares of Videocon, shareholders will get 4 shares in DishTV, sources say. The deal size for Videocon D2H is is expected to be around Rs 8,000 crore that is more than Videocon's current valuation of Rs 6,500 crore.
Dish TV is currently valued at Rs 10,000 crore.
Sources tell CNBC-TV18 it is likely to be a cash and share-swap deal and will be used to pay off lenders of debt-laden Videocon D2H, who have been skeptical over its ability to service the debt.
Videocon D2H is listed on Nasdaq via American Depository Receipts (ADR) and by the way of this acquisition Dish TV will also get listed on Nasdaq.
Videocon Industries, which is listed in India, have no stake in Videocon D2H. Both the companies have denied any deal talks. Source CNBC TV
Screenshot 2016 08 17 14 30 12 - Pic Tub Club - Free Image Hosting
Dish TV is in the final stages of acquiring Videocon D2H to create India’s largest direct-to-home (DTH) player with almost 45 percent market share.
The swap ratio is expected to be 4:5, which means that for every 5 shares of Videocon, shareholders will get 4 shares in DishTV, sources say. The deal size for Videocon D2H is is expected to be around Rs 8,000 crore that is more than Videocon's current valuation of Rs 6,500 crore.
Dish TV is currently valued at Rs 10,000 crore.
Sources tell CNBC-TV18 it is likely to be a cash and share-swap deal and will be used to pay off lenders of debt-laden Videocon D2H, who have been skeptical over its ability to service the debt.
Videocon D2H is listed on Nasdaq via American Depository Receipts (ADR) and by the way of this acquisition Dish TV will also get listed on Nasdaq.
Videocon Industries, which is listed in India, have no stake in Videocon D2H. Both the companies have denied any deal talks. Source CNBC TV
Screenshot 2016 08 17 14 30 12 - Pic Tub Club - Free Image Hosting
sunilmathew24
Member
- Joined
- 28 May 2016
- Messages
- 5
- Reaction score
- 2
Dish TV To Acquire Videocon D2H
Saw on CNBC Tv that Dish TV will acquire Videocon D2H for 8000 Crores.
With this they will have over 40% of the Indian DTH subscriber base.
That also probably explains why Videocon was not interested in adding any new HD channels
Saw on CNBC Tv that Dish TV will acquire Videocon D2H for 8000 Crores.
With this they will have over 40% of the Indian DTH subscriber base.
That also probably explains why Videocon was not interested in adding any new HD channels
Sateesh_Hyd
Member
- Joined
- 13 Aug 2013
- Messages
- 1,177
- Reaction score
- 786
RE: CONFIRMED : D2h Merging with DISH
Is DTH industry ready for consolidation? Posted on: 18/08/2016 09:14 AM TelevisionPost Team MUMBAI: The direct-to-home (DTH) industry in India is nearing consolidation. Six private DTH operators are competing for a piece of the subscriber share. Four out of these six have built size while one has found space in the Southern region. With distribution platforms not allowed to have exclusive content, the only real difference among the DTH players is service. The other aspects of the business are largely commoditised. Any merger and acquisition in the space will lead to an increase in market share and a reduction in costs. The dicey part is that this may not guarantee a rise in consumer ARPU (average revenue per user) as DTH still competes with cable TV networks. In this scenario, will the talks end in a deal between Dish TV and Videocon d2h? Will the two big DTH companies take the lead and demonstrate that size matters? Will due diligence argue in favour of a deal? The Dish TV and Videocon d2h combine will have a subscriber market share of over 45%. While Dish TV has a net subscriber base of 14.9 million as of 30 June 2016, Videocon d2h has 12.29 million. Together, their subscriber base stands at over 27 million. An operation of this size will bring in bargaining power when content deals need to be negotiated with broadcasters. The expectation is that there will be a cut in content expenses. Dish TV spent around Rs 800 crore (Rs 8 billion) towards content in FY16 while Videocon d2h would have spent about Rs 1,000 crore (Rs 10 billion). Procuring set-top boxes (STBs) would also turn cheaper. In FY16, Dish TV and Videocon d2h together would have spent Rs 1,600 crore (Rs 16 billion) in STBs, according to market estimates. A merger or an acquisition can mean a 15–20% saving in administrative, marketing and HR expenses. If a deal takes place and Dish TV acquires Videocon d2h, it will necessarily need a cash component, as lenders of Videocon will have to be paid. It may be a cash and share-swap deal. There are, however, several issues to be considered. Since the satellites are different for the DTH players, there will be no advantage on transponder space. Also, any merger and acquisition will involve a long period of integration process. For the deal to consummate, Dish TV will have to find the acquisition price attractive. “Dish TV will look at a bargain deal. It will be very sensitive to the price at which the deal is to take place,” a media analyst said. The DTH sector in India has been devoid of any merger and acquisition deals. Earlier, Reliance Digital TV was in merger talks with Kalanithi Maran-promoted Sun Direct, which has positioned itself as a Southern regional DTH operator. The deal made some sense, as both DTH operators are located on the same satellite. However, the talks fell through over valuations.
Read more at: [url=http://www.televisionpost.com/dth/is-dth-industry-ready-for-consolidation/]Is DTH industry ready for consolidation? | TelevisionPost.com | TelevisionPost.com[/url]
Is DTH industry ready for consolidation? Posted on: 18/08/2016 09:14 AM TelevisionPost Team MUMBAI: The direct-to-home (DTH) industry in India is nearing consolidation. Six private DTH operators are competing for a piece of the subscriber share. Four out of these six have built size while one has found space in the Southern region. With distribution platforms not allowed to have exclusive content, the only real difference among the DTH players is service. The other aspects of the business are largely commoditised. Any merger and acquisition in the space will lead to an increase in market share and a reduction in costs. The dicey part is that this may not guarantee a rise in consumer ARPU (average revenue per user) as DTH still competes with cable TV networks. In this scenario, will the talks end in a deal between Dish TV and Videocon d2h? Will the two big DTH companies take the lead and demonstrate that size matters? Will due diligence argue in favour of a deal? The Dish TV and Videocon d2h combine will have a subscriber market share of over 45%. While Dish TV has a net subscriber base of 14.9 million as of 30 June 2016, Videocon d2h has 12.29 million. Together, their subscriber base stands at over 27 million. An operation of this size will bring in bargaining power when content deals need to be negotiated with broadcasters. The expectation is that there will be a cut in content expenses. Dish TV spent around Rs 800 crore (Rs 8 billion) towards content in FY16 while Videocon d2h would have spent about Rs 1,000 crore (Rs 10 billion). Procuring set-top boxes (STBs) would also turn cheaper. In FY16, Dish TV and Videocon d2h together would have spent Rs 1,600 crore (Rs 16 billion) in STBs, according to market estimates. A merger or an acquisition can mean a 15–20% saving in administrative, marketing and HR expenses. If a deal takes place and Dish TV acquires Videocon d2h, it will necessarily need a cash component, as lenders of Videocon will have to be paid. It may be a cash and share-swap deal. There are, however, several issues to be considered. Since the satellites are different for the DTH players, there will be no advantage on transponder space. Also, any merger and acquisition will involve a long period of integration process. For the deal to consummate, Dish TV will have to find the acquisition price attractive. “Dish TV will look at a bargain deal. It will be very sensitive to the price at which the deal is to take place,” a media analyst said. The DTH sector in India has been devoid of any merger and acquisition deals. Earlier, Reliance Digital TV was in merger talks with Kalanithi Maran-promoted Sun Direct, which has positioned itself as a Southern regional DTH operator. The deal made some sense, as both DTH operators are located on the same satellite. However, the talks fell through over valuations.
Read more at: [url=http://www.televisionpost.com/dth/is-dth-industry-ready-for-consolidation/]Is DTH industry ready for consolidation? | TelevisionPost.com | TelevisionPost.com[/url]
Similar threads
