Walt Disney is planning to expand its presence in India. Sources said that they want to up their existing stake in UTV.
Analysts said that businesswise, it seems a perfect fit because UTV is involved in production and is going in a big way in that domain, with UTV Motion Pictures. It has just got a listing for that subsidiary. They are also into animation and have made two acquisitions in that space.
Walt Disney have to look at production in India in a big way and the animation segment, which they are already into in the US. This would seem like a business fit for them as well.
Looking at the financials of UTV, they seem to be doing well. For '08, the stock is trading at about twenty-three times price to earnings and for '09, at about 16.5 times. So, in terms of valuation, it does not seem like a sticky venture or foray.
In terms of enterprise value, Rs 1,600 crore marketcap with an enterprise value of about Rs 1,700 crore EV per share works out to about 768 on the stock.
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