Sony Pic­tures Signs Let­ter of In­tent to Ac­quire 9X Me­dia for .₹ 220 crore

Co is backed by PE firm New Silk Route, runs music and en­ter­tain­ment chan­nels

The Economic Times - - Business Of Brands - Gau­rav.Laghate@ times­group.com

Mum­bai: Sony Pic­tures Net­works In­dia (SPN) has signed let­ter of in­tent (LOI) to ac­quire 9X Me­dia, the com­pany that runs a clutch of music chan­nels in­clud­ing 9XM, for .₹ 220 crore, three peo­ple close to the devel­op­ment con­firmed to ET.

With the LOI in place, SPN has started the for­mal due dili­gence, which will take around 3 months, one of the per­sons said.

9X me­dia is backed by pri­vate equity fund New Silk Route, which owns close to 80% stake in the com­pany.

ET had ear­lier re­ported that New Silk Route and Pradeep Guha, MD of 9X Me­dia are in talks with SPN to sell the com­pany.

“The two com­pa­nies have signed the let­ter of in­tent that will al­low SPN to carry out due dili­gence of the com­pany ex­clu­sively. It may take up to three months for the process and the val­u­a­tion that the two com­pa­nies have agreed at is .₹ 220 crore,” sec­ond per­son men­tioned.

9X Me­dia op­er­ates three music chan­nels in Hindi, 9XM, 9X Jalwa and 9X Ba­jao, one in English (9XO), Marathi (9X Jhakaas) and Pun­jabi (9X Tashan) each.

It also has a dig­i­tal prod­uct Spot­boyE, which of­fers Bol­ly­wood’s news, gos­sip, movie re­views and other up­dates. While 9X Me­dia spokesper­son de­clined to com­ment, SPN spokesper­son said in a re­ply, “We do not com­ment on spec­u­la­tions. As and when we have some­thing to an­nounce, we shall share that with you.”

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