Future Ventures is in talks to sell its stake in ACK Media for about $25-$29 million, reports Reuters (via Mint). The Future Group has picked up 65.84% in ACK Media over two years - 26% for a reported Rs 37 crore in 2011, following that up with an acquisition of another 30%, and finally buying around 9% more in April 2012. Elephant Capital owns 26% stake in ACK Media, and had invested GBP 3.2 million in June 2010, GBP 0.9 million in April 2011. An interim report for the six month period ended February 28th 2013 suggests a significant diminution in the value of its investment: it says that its GBP 4.085 million investment is now worth GBP 2.13 million, having lost almost half its value, and hence a loss of GBP 1.955 million. Going by the valuation that Elephant Capital had estimated, ACK Media should be valued at around GBP 8.19 million (around $12.79 million at current rates), and hence, the Future Group's 65.84% stake would be valued at around GBP 5.39 million, or, at current rates, at around $8.41 million. In that context, Future Ventures' alleged expectation of $25-29 million appears to be irrational. But then, valuation lies in the eyes of the buyer. A recent Business Today story points out that Samir Patil and Shripal Morakhia, who founded ACK Media and bought Amar Chitra Katha and Tinke from India Book House, and then in 2010 bought India Book House itself, exited the business in 2012. Current CEO…
