IPL: Rajasthan Royals receive $1.3 billion acquisition offer
Owned by principal take holders Emerging Media Ventures along with minority investment from RedBird Capital Partners and Tiger Global, the team has put themselves on the market and invited four groups to continue bidding in the second round.
New Delhi: Former Indian Premier League champions Rajasthan Royals have received a $1.3 billion buyout offer in initial round of bidding for valuations.
Owned by principal take holders Emerging Media Ventures along with minority investment from RedBird Capital Partners and Tiger Global, the team has put themselves on the market and invited four groups to continue bidding in the second round.
Among the interested parties in fray are a consortium led by Times Internet Chairman Satyan Gajwani and another backed by US entrepreneur Kal Somani, reports Bloomberg.
The consortium of Somani, who is an existing investor, has offered $1.3 billion in preliminary discussions though it depends on future performance of IPL media rights.
The sale process was launched with a floor valuation of around $1.1 billion by adviser Raine Group, anonymous sources told Bloomberg, whose efforts to bring forth any comment from the consortiums didn't materialise.
It was earlier reported that Blackstone Inc. and Carlyle Group Inc. has explored the possibility of buying a stake in Rajasthan and defending IPL champions Royal Challengers Bengaluru.
Indicator
Valuation of Rajasthan is being deemed as a key indicator of investor appetite for top cricketing assets as early investors are now looking to cash out.
CVC Capital Partners Plc sold its majority share in Gujarat Titans for a valuation of about $800 million last year. RCB's owner Diageo Plc’s Indian subsidiary, United Spirits Ltd., has launched a review of its stake.
Multi-billion dollar valuation of IPL teams are under scrutiny, as bidders hope to fund stiff demands in anticipation of continued long-term media growth and international expansion.
Founded in 2008, IPL is a 10 franchise tournament that is held in the months of March, April and May. It has a profit-sharing structure, where franchises get a chunk of revenue from media rights and sponsorships, from the Board of Control for Cricket in India while also generating income through merchandise and ticket sales.