Tuesday, April 3, 2007

ADAG keen on Miditech buy

The Reliance Anil Dhirubhai Ambani Group (ADAG) is now eyeing Miditech, the production house synonymous with reality programming in India, for a 51% buy-out. The company’s interest in Miditech stems from its plan to foray into the broadcasting space with a reality and lifestyle channel.

Miditech is known for its expertise in the reality genre and has produced some successful reality shows for Indian television such as Indian Idol, Fame Gurukul and MTV Roadies. Reliance is hoping to piggyback on the production house’s experience and rule the reality genre in India. This would mean that Miditech would exclusively produce shows for Reliance, discontinuing all the other commitments made to other channels in the Indian terrain.

In fact, the company was also considering entering the capital market. The Reliance spokesperson denied it saying there was no such move. Reliance’s strategy is to first secure its supply chain and then venture into a particular project, as the case was with the film and entertainment sector with the acquisition of Adlabs.

In the recent past, a host of production houses have resorted to merging with the big players to strengthen their own position as has been the case with Manmohan Shetty’s Adlabs, Siddharth Basu’s Synergy Communications, Bobby Bedi’s Kaleidoscope and Balaji Telefilms partnership with Star India.

For Miditech, the alliance with Reliance will unleash a host of new avenues considering the younger Ambani’s big plans in the entertainment arena. Now a mid-sized player, Miditech is Asia’s leading independent production company that creates a wide range of programming.

The company has received accolades for many award winning documentaries and international format game shows. The company has earned a reputation for producing programmes to meet the standards of international broadcasters with over 400 hours of programming in 2005-2006 for clients such as MTV, National Geographic Channels International (NGCI), BBC, the Star Network, SET, Doordarshan, The Disney Channel, and Turner. It also works closely with international distributors like Granada International, Beyond and Tele Images.

Source : Economic Times

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