MUMBAI: Sony Pictures Entertainment (SPE) has finally got rid of the Indian promoters to get full operational control of its Indian television broadcasting joint venture company.

Sony Pictures Television (SPT), an indirect wholly-owned subsidiary of Sony Pictures Entertainment, will pay $271 million for the exit of the Indian shareholders in Multi Screen Media (MSM). The deal values MSM at $846 million.

The seven Indian shareholders held almost 32 per cent stake in MSM through Grandway Global Holdings and Atlas Equifin Private. With this, Sony?s stake will go up to a little over 94 per cent. The balance is with private equity firm Capital International.

The Indian promoters, who include Sudesh Mani Iyer, Sushil Shergil, Rakesh Agarwal, Jayesh Parikh, Raman Maroo, BR Sule and film actor Jackie Shroff, founded Sony Entertainment Television India (later renamed MSM) along with Sony Pictures in 1995. They were holding their stake through a company called ACE, which later was split into two entities - Atlas and Grandway.

Sony expects the transaction to close by the end of December 2012 after all the regulatory approvals are obtained.

Standard Chartered Bank had got the mandate to broker the deal.

"This gives us more flexibility to run MSM. We will give the company all the push that it needs for expansion,? says MSM CEO Man Jit Singh from overseas in a brief telephonic conversation.

Speaking to Indiantelevision.com, Singh says Sony?s expansion focus will be in the regional space. "We will be free to invest and expand. We are acquiring Maa TV. We are also looking at acquisitions or setting up our own regional channels. We have launched a new sports channel which we have to help grow," he adds.

The payment will be made in stages, with $145 million coming at the closing of the acquisition by December-end 2012. The balance $126 million will be paid in three equal annual installments starting from the fiscal year ending 31 March 2014.

"SPT has enjoyed great success with our channels in India and this acquisition further demonstrates our commitment to entertaining Indian audiences. We?d especially like to thank Grandway and Atlas for their entrepreneurial spirit that helped to get this venture off the ground 17 years ago," says SPT President, Worldwide Networks Andy Kaplan.

MSM?s portfolio of brands include the Hindi general entertainment channel Sony Entertainment Television and the Hindi movie channel Max. The other channels are Sab, a Hindi channel focusing on entertaining modern India; Pix, a channel that airs Hollywood movie product; Mix, a dedicated music channel and the recently launched sports channel Six.

Sony has included a substantial portion of the impact from this acquisition in Sony Corporation?s consolidated financial forecasts for the fiscal year ending 31 March 2013 and no material impact from this acquisition is anticipated on such forecasts, the company said.

SPT, a television industry content provider, produces around 6,000 hours of programming annually in over 70 countries.

Brief History

The 2000 Landmark
In 2000, US-based private equity group Capital International picked up 8 per cent stake for $200 million, valuing the company at $2.5 billion.

19 Feb 2008:
Bhupendra Kumar Modi was expected to close the deal in June for buying out the 32 per cent holding of the Indian promoters in Sony Entertainment Television (SET) India for $320 million. This pegs the valuation of SET India at $1 billion.

Legal battle in 2008
In 2008, the Indian promoters had moved the Bombay High Court, questioning the board?s capital call to its shareholders for infusing $40 million.

2 July 2010
The seven Indian shareholders, who together hold around 31 per cent of the company, charge Sony Pictures Entertainment of financial mismanagement.

Sony?s Acquisition Gameplan
Earlier this year, SPT agreed to take a 30% stake in regional broadcaster, Hyderabad-based Maa Television Networks. Three years ago, SPT acquired Bengali movie network Channel 8.

MUMBAI: Sony Entertainment Network?s EVP and management committee member Anjani Kumar has quit.

After being with the company for long nine years, he is moving to launch his new venture SuccessWRKSTM, which is an HR solution company.

Sony Entertainment Network CEO Man Jit Singh said, "In his nine years of association with Sony, Anjani has contributed immensely to the growth of the company. While his movement is a loss for all of us, we support him fully in his endeavour to set up an end-to-end HR solutions company. "

Kumar added, "It was always my dream to start my own venture and through SuccessWRKSTM I am giving shape to my dreams. SuccessWRKSTM will be a professionally managed organisation and will provide solutions in all the areas that connect to Human Resources. Whether it is Learning, Search, Staffing, HR Advisory or HR Outsourcing, we will offer solutions in every space. The plan is to build a company that will establish leadership in the HR Solutions space within next 2-3 years by having a pan India and selective international presence."

Kumar has around 17 years of experience in the HR domain. He has worked with companies like GE, Sony, ICI and Mattel.