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
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.”