Zee Network is all set to acquire B4U Television Network. According to industry sources, the Zee group is in an advance stage of negotiations. Zee has appointed KPMG as its advisor for the deal whereas B4U has appointed PricewaterhouseCoopers.
B4U Television Network is the holding company of B4U Multimedia that owns and runs the satellite TV channels B4U Movies and B4U Music. Zee on its part is pressing for a hassle-free buyout. The process of absorption of its UK-based parent company LMB Holdings is a step towards the proposal deal.
Subhash Chandra had earlier acquired strategic stake in the B4U through Ketan Parekh. Zee has been involved in controversies regarding stake buyout of B4U and ABCL.
B4U, which is expected to come out with an IPO, has dropped its massive expansion plans in broadband and e-commerce business. The company has 25 to 30 movies on the floor. These are expected to be sold in the package deal.
As part of the deal, Zee will also get B4U’s lucrative international operations, including UK and US. In UK B4U has around 40,000 subscribers. With each subscriber paying around 15 pound, Zee is expected to get at least Rs 4.2 crore from subscription fee alone.