Saregama India to Acquire Remaining 48.2% of Pocket Aces for Rs 209 crore

According to Saregama India's annual report, the entertainment company controlled by the RP Sanjiv Goenka Group would spend Rs 209 crore to acquire the remaining 48.2% ownership in digital entertainment provider Pocket Aces Pictures.

According to reports, the acquisition of this interest was contingent on the performance of the digital media firm, which was financed by Peak XV Partners (previously Sequoia), North Base Media, and Aarin Capital Partners, among others.

The business would pay Rs 375 crore for 100% of PAP. It paid Rs 166 crore for the initial 51.8% ownership in a deal that closed on November 11.

When the transaction was announced in September of last year, it was estimated to cost Rs 174 crore for 51.8%. Saregama then pledged to purchasing the remaining shares over a 15-month period.

The fair value of Rs 209 crore payable to PAP's remaining shareholders was recorded as "deferred consideration" under financial liability on the purchase date.

PAP is a digital entertainment firm that manages influencers while also developing and releasing long- and short-form content.

PAP's net loss for the fiscal year ending March 31 decreased by 22% to Rs 14 crore, while revenue fell 13% to Rs 90 crore. Expenses dropped 15% to Rs 104 crore.

Saregama purchased PAP to expand its footprint in the digital media ecosystem, as it serves over 120 million digital-first clients through platforms like as Instagram and YouTube.

In its annual report, Saregama stated that it will use PAP's reach to increase the popularity of its music catalog of over 150,000 songs among the 18-35 demographic, as well as create synergies between the two firms' artist, influencer management, and long-format video development businesses.

PAP creates online series under the Dice Media brand. It also creates branded content videos for its own channels, including Filtercopy, Gobble, and Nutshell.

Saregama India vice chairwoman Avarna Jain stated that the firm increased its spending in new music in FY24 and intends to expand investments by Rs 1,000 crore over the following three years, beginning this fiscal year.

"In the coming years, diversification will remain a key strategy for us to leverage synergies across our business streams," the CEO said.