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ZEEL to acquire 80% stake in tech start-up Margo Networks for Rs 75 cr
MUMBAI: Zee Entertainment Enterprises Ltd (ZEEL) has agreed to acquire 80% stake in technology start-up Margo Networks for Rs 75 crore.
The investment by ZEEL values Margo at Rs 95 crore.
Margo has developed a technology to set up server and computer infrastructure to enable content consumption and has the potential to drive up digital content consumption.
The board of the company gave in-principle approval for acquisition of the stake in Margo Networks at a consideration of Rs 75 crore.
“Considering the strong synergies of the technology developed by Margo with the current business of the company, the board of directors of the company has approved acquisition of equity stake in Margo,” ZEEL said.
The investment by ZEEL is expected to be concluded within 30 days.
Margo Networks was incorporated on 17 August 2016. Its authorised share capital stands at Rs 10 lakh and its paid-up capital is Rs 1 lakh.
Directors of Margo Networks are Ripunjay Mukesh Bararia, Devang Yogesh Goradia, Rohit Suresh Paranjpe and Mehul Dinesh Patel.
Shares of ZEEL closed Wednesday at Rs 525.25, up 0.46% on the BSE.
The deal is in sync with ZEEL’s larger ambition to grow big its digital business. As reported first by TelevisionPost.com, ZEE has incorporated a global digital outfit named Z5X that is to become the hub of all the digital properties. Chamli Tennakoon has been appointed chief executive officer of the new organisation, in addition to his existing role of chief digital officer, Essel Group.
Among many other changes, dittoTV business head Archana Anand is made digital head of Z5X (India). Zee Entertainment Enterprises Ltd (ZEEL) has digital properties that include over-the-top (OTT) service dittoTV and advertising-led video-on-demand (VoD) platform OZEE.