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Zee-Ten Sports: A sporting partnership
Zee has finally taken over Ten Sports. After wavering between Zee and Sony, Ten Sports finally sold controlling interest to Zee in a cash deal worth over Rs 250 crore, reports CNBC-TV18.
Zee has finally taken over Ten Sports. After wavering between Zee and Sony , Ten Sports finally sold controlling interest to Zee in a cash deal worth over Rs 250 crore, reports CNBC-TV18.
The wooing is over, the deal is sealed. And Zee has picked up 50% in Ten Sports for Rs 256.6 crore. It will fund the deal through internal accruals and will get majority representation on parent Taj TV's board. Zee can buy the rest of the stake in Ten Sports after 2009, when its distribution contract with One Alliance expires.
"We will get access to their sports properties like Pakistan Cricket Board, Sri Lanka Cricket Board and West Indies rights as well as UEFA Champions League, US Open etc and we will also get a footprint in markets like Middle East, Far East and Europe where we are not present," said Subhash Chandra, Chairman, Zee Telefilms.
Zee will consolidate Taj TV financials into its balance sheet. It expects this deal will help its topline grow USD 50 million over the next three years. The development will also impact its bid for ICC media rights over the next 8 years. By buying Ten Sports, Zee's only effective rival in the bid is the ESPN Star Sports combine. Zee hopes its consolidation will drive down cricket valuations.
"I certainly don't see the rights valued at more than USD 750 million and don't try to probe me further because I can't tell you our bid amount but I dont see value in the rights at USD 750 millions," said Subhash Chandra.
But Zee might need the rights to boost its cricket portfolio. Zee Sports holds rights to just 25 matches at neutral venues and Ten Sports has no Indian cricket rights. Zee has pinned hopes on the ICC rights, which will be decided on Friday. And those rights could make the alliance even sweeter.
Zee will consolidate Taj TV financials into its balance sheet. It expects this deal will help its topline grow USD 50 million over the next three years. The development will also impact its bid for ICC media rights over the next 8 years. By buying Ten Sports, Zee's only effective rival in the bid is the ESPN Star Sports combine. Zee hopes its consolidation will drive down cricket valuations.
