Pentamedia Graphics has dropped plans to consolidate its entertainment business controlled by its recently-acquired subsidiaries, Media Dreams, Mayajaal and Krish Srikkanth Sports. According to the merger plan announced in May, Mayajaal and Krish Srikkanth Sports were proposed to be merged with Media Dreams. The merged entity was to be renamed Penta Entertainment Ltd.
Last year Pentamedia acquired these three companies through separate stock swap deals. Media Dreams is into film-making and TV content marketing business. Mayajaal is an ‘entertainment dome’ near Chennai. Srikkanth’s firm is an event management company and also produces sports-related TV content.
The primary objective behind the merger plan was to create a strong entity with both tangible and intangible assets, which be helpful in raising funds for expanding the businesses. Mr. V Chandrasekaran, chairman and CEO, Pentamedia, said.
Media Dreams has an equity base of Rs 7.5 crores and a total net worth of over Rs 18 crores. The company has so far produced and released four films. It is in the process of making a Kamal Hasan-starrer Pammal K Sambandam, besides couple of TV serials for Sun TV. It has also entered into the business of distribution of films. It has taken distribution rights for Tamil movie 12B in Chennai