Jeff Bezos is looking to diversify Amazon India’s entertainment business by acquiring multiple movies and media distribution players, including Mumbai-based film chain Inox Lasher, Indian Express reported.
Amazon India is trying to pick a stake in some of the businesses that help the poorest person in the world, using repeated lockdowns and social distance criteria for pandemic editing businesses such as multiplex networks. Inox Lasher is one of the many candidates being monitored by Amazon for diversification, Indian Express reports. Although Amazon has been running an over-the-top (OTT) content business in India since 2016, the pace of growth has not been as much as corporate expectations.
After the initial growth of the primary six months last year, its OTT service Amazon Prime has not grown needless to say, the report said. Three to four deals are valued at this location, including some distressed assets. Anonymous sources said that Amazon India is in extensive discussions with a number of people. Inox Lasher, which has been trading publicly since the Pandemic started last year, continues to report losses. Inox Lasher reported revenue of Rs 90 crore for the January-March quarter. 75 percent drop from last year. Corporate net profit stood at Rs 93.7 crore. Analysts at ICICI Direct expect the corporate to post a net loss of Rs 235 crore this fiscal.
Amazon India had invested $ 1.5 billion in the Indian business just before the epidemic, most of which was pumped into the e-commerce business. The report said that a serious deal by Amazon within the entertainment space could see Jeff Bezos’ company increase its specialization in this side of the business and be far away from e-commerce. Amazon faces policy changes and challenges in e-commerce from Mukesh Ambani’s Reliance Retail and Walmart – backed Flipkart. Amazon had earlier held discussions with US-based cinema chain AMC for acquiring a stake but talks didn’t bear fruit.
One of the foremost important cinema chains within the country with 153 multiplexes and 648 screens. Most of the company’s screens are within the western part of the country, followed by North, South, and East. As of June 30, Inox Leisure’s promoters held a 43.63% stake, while 56.23% is public-owned.
On Monday Inox Leisure’s share price gained 1.7% to finish at Rs 302.5 apiece. Inox’s share price has gained 5.46% thus far this year. The company’s market cap stands at Rs 3,705 cr.