Comcast, partners make offer for stake in Subhash Chandra's Zee Ent

A consortium that includes U.S. cable giant Comcast Corp., James Murdoch’s Lupa Systems and Blackstone Group Inc. has made an offer for a stake in Zee Entertainment Enterprises Ltd., India’s largest private broadcaster, people familiar with the matter said.

The group plans to snap up a 51% stake, which has a market value of about Rs 19,000 crore ($2.77 billion), said one of the people, asking not to be identified as the discussions are private. The bid is non-binding, the people said.

A deal could be announced as soon as Wednesday and there could be more investors, another person said. Deliberations are ongoing and might not result in a deal, the people said. Representatives for Comcast and Blackstone declined to comment, while a representative for Zee had no immediate comment.

Zee, the Mumbai-based broadcaster controlled by former rice trader-turned-media mogul Subhash Chandra, is seeking a strategic investor to help pay off debts of its parent group as well as fend off competition from Netflix, Amazon and hundreds of local TV channels vying to tap India’s booming demand for content.

A deal would give Comcast, Lupa and Blackstone control of Zee’s deep library of content and its ZEE5 platform offering Bollywood films and more than 90 television channels in 12 languages on-demand via Internet. Some of the world’s largest telecommunications companies including AT&T Inc., Vodafone Group Plc and KDDI Corp. have been buying film and television production and cable TV assets to bolster earnings as subscribers level off.

Shares of Zee slipped 0.2% in Mumbai on Tuesday afternoon, while the S&P BSE 100 Index was little changed.

Disney takes control of Hulu in deal with Comcast; will challenge Netflix

Walt Disney Co said it will take full control of the Hulu service in a deal with Comcast Corp, as it vies for a bigger piece of the global video streaming market dominated by companies such as Netflix Inc.

The agreement, which ascribes a minimum equity value to Hulu of $27.5 billion, allows either company to trigger a sale or purchase of Comcast's 33% stake to Disney as early as January 2024. Comcast has also agreed to fund Hulu's recent buyout of AT&T's 9.5% interest in the company.

By establishing an expiration date of five years from now, Comcast is betting the value of its stake will nearly double or more without any more additional financial obligations.

Comcast's departure from the Hulu board will let Disney prepare unencumbered to expand the scope and reach of Hulu in the domestic and international markets to battle the likes of Netflix, Amazon.com Inc and Apple Inc.

"It is important for Disney to have full control of the direction and content on Hulu," said Trip Miller, managing partner of Memphis-based hedge fund Gullane Capital Partners, whose funds include Disney shares. "Postponing the closing five years (later) allows Disney to not take on more debt after just closing (its purchase of) Fox, while giving Comcast an option to the upside if/when the Hulu valuation grows during this time."

Disney is preparing to launch its own streaming service called Disney+ on Nov. 12. At a Tuesday morning investors conference, Disney Chief Executive Bob Iger said the service will launch in India.

Comcast, which is also preparing to launch an NBCUniversal advertising-supported streaming service by the middle of next year, said it will extend its licensing agreement to provide NBCUniversal shows and its live channels until late 2024 and agree to distribute Hulu on Comcast's cable platform.

To preserve the ability to run NBCUniversal programs on its own service, NBCUniversal will have the option to offer some of the shows it currently licenses exclusively to Hulu in one year's time in exchange for lower license fees. NBCU will also have the option to end most of its licensing agreements with Hulu in three years.

Shares of Disney closed up 1.4% at $133.21 on the New York Stock Exchange. Comcast shares rose 1.5% to $42.91 on Nasdaq.

Last month, Hulu said it had bought back telecommunications and media company AT&T Inc's stake in the US entertainment streaming service for $1.43 billion, in a deal that valued Hulu at $15 billion.

Hulu, which competes with Netflix and Amazon.com's Prime Video, has more than 26.8 million paid subscribers.