According to the sources, the purchase of this stake was linked to the performance of the digital media company, which was backed by Peak XV Partners (formerly Sequoia), North Base Media and Aarin Capital Partners, among others.
With this, the company will pay Rs 375 crore for 100% of PAP. It had paid Rs 166 crore to buy the initial 51.8% stake in a deal that was completed on November 11.
When the acquisition It was announced in September last year and was expected to pay Rs 174 crore for 51.8%. Saregama He then agreed to buy back the remaining shares within 15 months.
The fair value of Rs 209 crore payable to the remaining shareholders of PAP has been recognised as ‘deferred consideration’ in financial liabilities on the acquisition date.
PAP is a digital system entertainment company that operates through digital media ecosysteminfluencer management and production and publishing of long- and short-form content. During the last fiscal year ended March 31, PAP’s net loss narrowed by 22% to Rs 14 crore, while revenue declined by 13% to Rs 90 crore. Expenses fell by 15% to Rs 104 crore. Saregama acquired PAP to increase its presence in the digital media ecosystem as it reaches out to over 120 million digital customers on platforms such as Instagram and YouTube.
In its annual report, Saregama said it would leverage PAP’s reach to further popularise its music library of over 150,000 songs among the 18-35 age group, besides creating synergies between the two companies’ artiste, influencer management and long-form video creation businesses.
PAP produces web series through its Dice Media brand. It also produces branded content videos through its own channels, including Filtercopy, Gobble and Nutshell.
Saregama India Vice President Avarna Jain said the company doubled its investments in new music in FY24 and plans to further increase investments by investing Rs 1,000 crore over the next three years, starting this fiscal.
“In the coming years, diversification will continue to be a key strategy to take advantage of synergies in our business areas,” he added.
Disclaimer:
The information contained in this post is for general information purposes only. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
We respect the intellectual property rights of content creators. If you are the owner of any material featured on our website and have concerns about its use, please contact us. We are committed to addressing any copyright issues promptly and will remove any material within 2 days of receiving a request from the rightful owner.