At a time when digital operations of established media companies in India appear to be struggling, media and entertainment company JMD Telefilms Industries is looking to buy: the company has announced the acquisition of Trading Gate FZCO, a Dubai based digital & media Company, for Rs. 120 million (around $2.6 million), and is setting aside money for more acquisitions, and planning a mobile VAS foray. Trading Gate will introduce its digital media services and solutions in India, and provide JMD (the ‘Jai Mata Di’ devotional music brand) a means of selling its digital content and solutions in the Middle East. JMD has been providing its devotional and regional music content in the Middle East, and has has been in talks with local channels for airing its regional content program.
Trading Gate FZCO is a five year old free zone company (hence 100% foreign ownership is allowed) which provides digital and media solutions to UAE, Bahrain and Saudi Arabia, including to Radio FM stations Cool, Suno, and Sports media company Duplays, as well as to the real estate portal GoWealthy. Subject to regulatory approvals, the acquisition will be effective March 1st 2011.
Trading Gate’s CEO Nicola Mazzucato says that they were first talking to JMD as a joint venture partner. Following this acquisition Trading Gate will become a wholly owned subsidiary of JMD Telefilms (their results will be consolidated).
JMD Enters MVAS Business, Eyes More Deals
In addition, JMD has set aside Rs. 30 crore (around $6.5 million) for acquisitions in Mobile Value Added Services segment. In two recent, separate notices to the Bombay Stock Exchange, JMD Telefilms has said, first, that it has tasted some success as a regional content provider (pdf), and is now becoming an MVAS provider itself, and is in talks with MVAS companies for a merger or an acquisition. Additionally, it is planning (pdf) to launch its mobile learning solutions, VAS for rural consumers, and mobile applications. It also says it is in talks to offer exclusive 3G content and services.
In other JMD
hyperbole news, the company says that, in the long term it will spend Rs. 100 crore (around $22 million) for acquisition of more digital and media solutions companies. That’s a total of $28.5 million still to be spent, apart from the $2.6 spent on Trading Gate.