MUMBAI: Lupa India, the Indian subsidiary of James Murdoch’s investment company Lupa Systems, in which Uday Shankar, former chairman of Star India and president of Walt Disney Asia Pacific took a 51% stake in December, is reportedly making a major move into the Indian media and entertainment sector.
As per reports, Lupa India is in the final stages of picking up a 39% stake in Viacom18, the joint venture in which TV18 (controlled by Reliance Industries Ltd) has a 51% majority stake, and Viacom CBS has a 49% stake.
While Reliance’s TV18 will maintain its majority stake of 51%, Lupa India will reportedly pick up a 39 per cent stake, with Viacom CBS retaining a minority 10% share in the company.
According to Economic Times, which first reported on the development, the deal will entail primary (bulk) and secondary infusion of over Rs 12,000 crore into Viacom18 at a valuation of Rs 30,000 cr ($4 billion).
It bears noting that Lupa India is coming on board as “strategic investors with a say in operational management” rather than a direct managerial role. In the short term, this would mean a direct oversight in the bidding strategy for the upcoming blockbuster cricket rights.
For the record, Lupa Systems is a private holding company founded in 2019 by James Murdoch, the former CEO of 21st Century Fox, Sky plc, and STAR. The company has offices in New York and Mumbai. Lupa focuses on companies within the technology and media industries, impact-driven companies focused on environmental sustainability, and emerging markets, particularly within the Indo-Pacific region.
OFF THE CUFF VIEW: There are big ticket cricket rights tenders coming up (IPL, ICC and BCCI in order of network interest). And to a far, far, far lesser degree of importance and value the India rights for the English Premier League.
It goes without saying that Disney Star, the incumbent rights holder for all the properties mentioned, has a major task on its hands now in terms of retaining the biggest of them all – the IPL. And if it were to lose Indian media’s crown jewel property, what its options might be.
Whichever way the dice falls though. One thing is certain. The BCCI, without doubt among the most opaque and least accountable major sports bodies in the world, will be laughing all the way to the bank with another massive payday on the cards from the IPL rights bidding.
