Comcast is interested in a piece of Zee Entertainment
Comcast (CMCSA) is one of the foreign firms seeking to purchase a stake in Indian mass media company Zee Entertainment, according to a report from the Economic Times. The other foreign firms seeking a piece of Zee include Apple and Sony (SNE). Apple is known to be betting on its services business to drive growth as iPhone sales are slowing. Apple’s service business includes media operations. Chinese technology giants Tencent (TCEHY) and Alibaba (BABA) have also been mentioned in connection with a stake purchase in Zee.
Global operations contributing 25% of revenue
Comcast has in recent times shown strong interest in expanding its global reach. It bought European satellite broadcaster Sky for around $40 billion last year. The company said that with the purchase of Sky, its global operations would be able to contribute 25% of its total revenue from around 9.0% currently.
Comcast’s attempt to expand in India’s media sector with the purchase of 21st Century Fox (FOX) (FOXA), which owns a stake in Star India, failed last year after Fox chose to do a transaction with Walt Disney (DIS) instead. Zee, with its interests in television, print, film, and Internet, could be valuable to Comcast’s ambitions to expand in India’s media and film industry.
For media companies like Comcast, India presents an attractive growth opportunity. India’s advertising market is forecast to grow to $14.2 billion by 2021 from $9.7 billion in 2018, according to Zenith data, cited by Reuters.