The Walt Disney Company (DIS) has announced that it's in an agreement to buy Hungama TV, one of the top rated children's channels in India.
Andy Bird, President, Walt Disney International commented, "India is a long-term strategic priority for The Walt Disney Company. The acquisition of Hungama TV, and the investment in UTV will significantly advance our presence in India and allow us to develop a strategic relationship with one of the country's leading integrated media companies."
Disney has also bought an equity interest in UTV Software Communications Limited, an Indian media company. Byrd commented on both deals, "Not only will we be acquiring a great channel asset, The Walt Disney Company will also be able to participate in UTV's diversified media businesses and bring to UTV our global media and synergy expertise, including developing and distributing high-quality family friendly content in nearly 200 countries worldwide and expanding related franchises across film, television, music, merchandise, new media and live entertainment."
At this time Disney reaches over 107 million homes in India. Both of the above deals with the India companies are subject to regulatory approval.
I like what Disney is doing here. They understand that the U.S. is a mature and declining market. It's the first time in years that I've seen them do some things that can truly enhance the success over the long-term. The purchase of Pixar was one of the better ones.
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