The government of India today announced that it has cleared Walt Disney’s investment proposals in UTV and Hungama TV. Disney’s proposal was part of the Rs 2.5 billion of foreign investment plans that were approved by Finance Minister Palaniappan Chidambaram, a statement from the finance ministry said in New Delhi.
Earlier this year, the Burbank based Mouse House had announced that it planned to buy buy 14.9 percent of UTV Software for $14 million and 100 per cent of the UTV-owned Hindi language kids channel Hungama TV for $30.5 million. The proposal was pending government clearance, and with the finance ministry now giving it the go-ahead the modalities of the acquisition can be completed.
Disney is pretty optimistic about the $50 million Indian children’s television market, and estimates that it is growing at 25 per cent per annum.