The company said the investment will largely be deployed to fund sports rights acquisitions, develop global sports events, finance Indian language and international film production and distribution, develop further digital content production for wireless and VOD/IPTV platforms and expand the broadcasting operations of the company.
The deal is among the largest ever private equity investment in Indian media & entertainment sector. 3i’s investment is its second in Nimbus while the deal marks the entry of OIF into the Indian market and Cisco’s continued strategy to invest across the Indian content industry.
Harish Thawani, Executive Chairman, Nimbus Communications Limited said, “Nimbus’ consistent year-on-year hyper growth, depth of management and aggressive expansion plans were key to attracting the highest quality investors to our third round of private equity investment.”
The investment is in the form of compulsorily convertible bonds that will convert into equity based on a pre-set formula, prior to an IPO or trade sale.
According to a CII-KPMG report, the entertainment industry in India is projected to grow by 20 per cent year-on-year to touch US $ 13.5 billion (approx Rs. 59, 500 crores) by 2010. Television will form the largest chunk in the entertainment industry, constituting over 60 per cent revenues, at $ 8.4 billion (approx Rs. 37,100 crores) by 2010. The KPMG projections forecast film industry revenues at US $ 3.25 billion (approx Rs. 14, 300 crores) in 2010.
The sports events, sports TV production and sports broadcast sector is considered to be the fastest growing sector and is expected to grow to US $ 1.8 billion (approx Rs. 7.920 crores) in 2010.
