Well, this is BIG news indeed: it appears that Reliance Entertainment’s fund-raising and valuation-building efforts have hit a road block. ET reports that though the deal isn’t done yet, though it hasn’t fallen through either: term sheets were signed in March, but valuation and “other issues” are holding back investment. Both Reliance and Soros’ representatives have declined to comment. More details on why the deal is not yet done at ET. We’re trying to contact Reliance Entertainment President Rajesh Sawhney for a confirmation.
Readers will remember that Reliance Entertainment had announced an investment of $100 million for just a 3 percent stake, valuing the company at around $3 Billion. Note that Reliance Entertainment comprises of BIG Movies, BIG Music, and digital ventures BIG Animation, Zapak (online gaming), Jump Games (mobile gaming), BIG Flix (online streaming, offline video rental) and BIG Adda (social networking). Of these, substantial investment plans have been announced for Zapak and BigAdda, and JumpGames has paid, reportedly, over $50 million for its deal with Manchester United.
Do note that Soros was among the seven investors who put in $14 Billion Rs. 14 Billion in Reliance Telecom Infrastructure Ltd.
This website uses IntenseDebate comments, but they are not currently loaded because either your browser doesn't support JavaScript, or they didn't load fast enough.
7 Comments until now.
$14 Billion in Reliance Telecom? It might be Rs 14 Billion. Please check.
Thanks Sashi…have corrected.
The link given for Anirigts is incorrect. In fact the name is now changed to Big Animation (http://www.biganimation.com). The website is under construction though…
You’ve forgotten the recently launched BigTV – one of the more important businesses of Reliance Entertainment, which I imagine significantly drives up the valuation.
Hi Gautam,
not forgotten any, afaik. BIG TV is a part of Reliance Communications, not Reliance Entertainment. Just did that story. Sometime last year, I’d asked the company for a structure, so we can better understand the components that we’re covering — but they’d declined to share the structure.
The FourStocks community is founded on a strong belief in transparency and in putting one's money where one's mouth is. This emphasis on transparency and testing one's ideas in the form of concrete stock picks, helps investors get over some of the more self-destructive biases exhibited by humans (and monkeys!) on stock markets.
How to participate? It is a simple process:
1)Register (http://www.fourstocks.com/register) – it's a simple form. Then login.
2)Make picks. You need a minimum of four active picks to be an active member on FourStocks.
3)Follow picks (http://www.fourstocks.com/latest-picks) and comments of other investors.
4)Use the (http://www.fourstocks.com/players) Leader board and (http://www.fourstocks.com/stocks)Stock Ratings to help yourself to better stock ideas.
For more Information log on to: http://www.fourstocks.com
A lot of lay offs have happened at both Jump Games as well as Big Animation, both operations having been scaled down massively.
in fact Big has ventured into the cash cow business of animation education.