Amarchand and Cleary lead on Eros Internationals acquisition of B4U Tel Network

Bollywood films producer and distributor Eros International is acquiring the remaining 76 per cent in the digital broadcasting firm B4U Television Network in a cash-plus-stock deal worth $53.1 million (Rs 270 crore)..Amarchand Mangaldas advised Eros International Plc with a team led by Delhi Partner Puja Sondhi along with Principal Associate Pooja Mahajan and Senior Associate Ramanuj Gopalan..Cleary Gottlieb Steen & Hamilton LLP advised B4U Television Network with a team led by London Partner Tihir Sarkar..According to VCCircle, the deal will boost Eros’ presence in the entertainment value chain – from being a content creator and distributor to a company reaching the last-mile content consumer. The acquisition will also open up a new revenue stream for Eros and that, too, with an apparently profit-making entity..Eros International Plc, which is promoted by the Lulla family, is listed on London’s AIM exchange and is the parent firm of the Indian public company Eros International Media Ltd..B4U was formed as a media joint venture between Lakshmi Mittal, Gokul Binani and the Lulla family. Currently, the Mittals and the Binanis are reportedly the majority stakeholders..B4U runs two entertainment channels, B4U Music and B4U Movies, which are available in more than 100 countries, including India, the UK, the USA, Canada and other countries in the Middle East and Africa. It generates bulk of its revenues internationally, predominantly through the fees earned from being a part of a cable or satellite service provider’s subscription package, and also from advertising within India.