Farhan Akhtar’s Excel Entertainment strikes historic deal with Universal Music Group, market value crosses ₹2400 crore
Excel Entertainment, the production company owned by Farhan Akhtar and Ritesh Sidhwani, reached a milestone on Monday when the company entered into a partnership with Universal Music Group. The historic minority stake deal is the largest for any production company.
According to the agreement, the value of Excel Entertainment will exceed ₹2,400 crore and will accelerate the Farhan Akhtar-owned brand while also strengthening Universal Music India’s domestic operation in a high-growth and strategically important market.
Negotiations for both banners have been ongoing for months. According to a press release, this collaboration also allows Universal to strengthen its presence in the Indian film market.
UMI will be a significant minority shareholder in Excel with a 30% equity stake.
“The agreement will form the basis of a new strategic partnership between UMI and Excel to accelerate Excel’s growth and further enhance UMI’s position in the important Indian market,” according to the press release.
The partnership will be officially announced at a press conference in the presence of Maharashtra Chief Minister Devendra Fadnavis. The collaboration is in line with Prime Minister Narendra Modi’s vision of creating Indian content for global audiences.
According to IFPI’s latest data, India ranks as the world’s 15th largest recorded music market by revenue and has strong linkages between the Indian audiovisual and music sectors. Additionally, with access to over 375 million ‘premium’ viewers watching movies, original programmes, sports, reality shows and documentaries, and 650 million smartphone users in India, there is an opportunity to continue growing the market in the coming years, the press release said.
What are the terms of the agreement?
Under the terms of the agreement, UMG will receive global distribution rights to all future original music created for projects owned or controlled by Excel. The alliance also includes the launch of an exclusive Excel music label to be distributed globally by UMG.
Universal Music Publishing Group will also become Excel’s exclusive music publishing partner, creating opportunities for existing UMG and UMI artists and repertoire to be incorporated into Excel’s future productions.
The announcement comes as Excel Entertainment celebrates its 25th anniversary by debuting with “Dil Chahta Hai” in 2001. Banner has supported many well-known titles over the years, including the “Don” series, “Zindagi Na Milegi Dobara”, “Gully Boy” and the “Fukrey” series.
Banner has also pioneered OTT content with acclaimed shows like “Mirzapur”, “Made in Heaven” and “dahaad”.
Universal Music Group is the world’s leading music organization.
(This is a developing story. Check back for updates)
