According to sources, purchase of this stake was linked to the performance of the digital media company, which was backed by Peak XV Partners (formerly Sequoia), North Base Media and Aarin Capital Partners, among others.
With this, the company will pay Rs 375 crore for 100% of PAP. It had paid Rs 166 crore to purchase the initial 51.8% stake in a deal that was completed on November 11.
When the acquisition was announced in September last year, it was expected to pay Rs 174 crore for 51.8%. Saregama had then committed to buy the remaining shares over 15 months.
The fair value of Rs 209 crore payable to PAP’s remaining shareholders has been recognised as “deferred consideration” under financial liability at the acquisition date.
PAP is a digital entertainment company that operates across the digital media ecosystem, managing influencers, and producing and publishing long- and short-form content.For the last fiscal year ended March 31, PAP’s net loss narrowed by 22% to Rs 14 crore while revenue declined 13% to Rs 90 crore. Expenses fell 15% to Rs 104 crore.Saregama acquired PAP to grow its presence in the digital media ecosystem since it reaches more than 120 million digital-first customers on platforms like Instagram and YouTube.
In its annual report, Saregama said that it would leverage PAP’s reach to further popularise its music library of over 150,000 songs among the 18-35 audience segment, besides creating synergies across the artist, influencer management, and long-format video creation businesses of the two companies.
PAP produces web series through its Dice Media brand. It also produces branded content videos through its owned channels, such as Filtercopy, Gobble and Nutshell.
Saregama India vice chairperson Avarna Jain said the company doubled its investments in new music in FY24 and plans to further increase investments by investing Rs 1,000 crore over the next three years, starting this fiscal year.
“In the coming years, diversification will remain a key strategy for us to leverage synergies across our business streams,” she added.
