Harry Sloan and Jeff Sagansky are dipping their toes into the Indian pay-TV market with a $300m-$375m investment in the sub-continent’s direct-to-home broadcaster Videocon d2h.
Silver Eagle will receive a 33.5% equity ownership stake in a transaction that means Videocon will have an enterprise value of more than $1bn.
Silver Eagle plans to take the pay-TV operator public in the US.
According to a press release issued by Silver Eagle representatives, Videocon d2h services more than 500 digital channels as well as other video and audio services via satellite and commands a 16.5% share of the direct-to-home market.
The Mumbai-based company launched in 2009 and is a member of the global conglomerate Videocon Group, which owns interests in consumer electronics, oil and gas, power, retail and insurance, among others.
“We created Silver Eagle for the purpose of finding a fast-growing media opportunity, which is taking full advantage of the digital revolution,” said Sloan (pictured at left)
“With almost 10m digital subscribers, this well-managed company has passed the inflection point to become a leader in India’s explosive television growth.”
“Videocon’s DTH business is in what we believe to be the fastest growing segment of the media industry in India in part because of the government’s ongoing mandatory digitisation plan in addition to millions of Indian homes subscribing to pay TV for the first time,” said Sagansky (pictured at right.)
“Together there is an expected 33m new Pay-TV subscribers over the next four years and we are pleased to become part of Videocon d2h’s dynamic growth story.”
Videocon Group chairman Venugopal Dhoot added: “Our DTH service already offers the highest number of channels in each of our packages and we were the first company to launch HD channels in India.
“We anticipate that the transaction with Silver Eagle will not only give us additional capital to continue development of our services, but also unparalleled expertise and experience. We look forward to working closely with Harry and Jeff on expanding our market share and services.”