Utv and Disney Case Study

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Daniel R. Litwa MGMT-450 4/21/2014 UTV and Disney Case Study This case study talks about UTV Software Communication’s decision of whether or not to partner with the Walt Disney Company. For the most part, UTV is a media and broadcasting company with offices in India, the United States, the United Kingdom, and the Middle East. They used to conduct business primarily on a B2B network, but are currently focusing more on B2C business, and own one of the most popular channels in India, Hungama TV. Disney wants to buyout 100% of Hungama TV, as well as invest 14.9% in UTV, in which both of the companies would become partners. UTV needs to decide whether or not to go along with the deal that Disney is proposing to them. UTV is currently in business on a small scale, but they have plans to move towards a more global spectrum. A partnership with Disney would definitely give them more of a global presence, but that also comes at the cost of giving up their hit kids channel in India, Hungama TV. Disney already has a kids channel in India, which currently ranks at number 2; Hungama TV being rated at number 1. Disney’s acquisition of Hungama would basically give them complete control over kids TV in India, while leaving almost no control to UTV. On the other hand, it is very important to UTV’s CEO, Rohinton Screwvala, to expand the company globally. Although Disney would be acquiring a great channel in India, they would also bring to UTV their global media and synergy expertise. Disney is one of the largest companies and participates within the media business in nearly 200 countries, so they would clearly be a strong partner for UTV to acquire. There are a lot of options for UTV to consider when making this decision. Disney does not really lose anything out of this deal except the expense of some of their extra revenue; for them it is all about growing bigger and better.

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