Saregama Purchases Majority Stake in Digital Entertainment Firm Pocket Aces
By siliconindia | Saturday, 30 September 2023, 09:29 IST
Saregama, a prominent name in the music and media industry, is embarking on a new chapter in its growth story with the majority acquisition of Pocket Aces Pictures Private Limited. Pocket Aces is a rapidly growing digital entertainment company that has a direct relationship with over 95 million digital-first customers across platforms like Instagram and YouTube. Saregama will acquire 51.8% of Pocket Aces’ shares for approximately Rs 174 crores, with an option to acquire an additional 41% stake in the next 15 months at pre-agreed multiples. The transaction is an all-cash deal. This acquisition aligns with Saregama’s strategic ambition to establish a leadership position in new music across all Indian languages.
Pocket Aces is a youth-focused digital content creator and publisher with an impressive intellectual property catalog that includes over 3000 content pieces, spanning web series, sketches, music videos, and reels. The company operates popular channels such as FilterCopy, Nutshell, and Gobble, releasing over 30 new pieces of content daily. It also manages a roster of more than 100 digital influencers through its talent management arm, Clout. Moreover, its long-form studio, Dice Media, has produced relatable youth-centric web series available on OTT platforms like Netflix, Hotstar, and Amazon. In the fiscal year 2023, Pocket Aces reported Revenue from Operations of 104 crores, reflecting a 34% compound annual growth rate (CAGR) over the last four years, with expectations of even faster growth in the future.
Saregama’s acquisition of Pocket Aces introduces a new dimension of intellectual property and a distribution network with over 95 million followers. Saregama intends to leverage this network to further popularize its music library among the 18-35 age group. Additionally, the acquisition will create synergies across artist and influencer management and long-format video creation businesses of both companies. Avarna Jain, Vice Chairperson of Saregama, commented, "This acquisition signifies the confluence of tradition and innovation. While we have always been leaders in the realm of music and media, this partnership with Pocket Aces will add new dimensions to our business as we tap into the burgeoning young digital audiences".
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