NCLT approves amalgamation of Novi Digital Entertainment with Star India
The main objective of the amalgamation is a strategic realignment of operations in streaming, broadcasting, and distribution.
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In an ordered passed on May 15, the National Company Law Tribunal (NCLT) Mumbai bench approved the amalgamation of Novi Digital Entertainment (Disney+Hotstar) with Star India. Hotstar is an online video streaming platform owned by Novi Digital Entertainment Private Limited, a wholly owned subsidiary of Star India Private Limited.
The hearing had been postponed by the NCLT to March 27. Earlier, the hearing had been set to take place on February 21 after the Indian Performing Right Society (IPRS), told the NCLT that its plea against the February 9 order was being held in judgement by the NCLAT.
The NCLT on Feb 9, rejected the IPRS’s plea questioning the legality of the arrangement between Star India and Novi Digital Entertainment. The IPRS had claimed that both parties, Star and Novi Digital had moved ahead with the merger scheme without seeking its approval. IPRS is an unsecured creditor to both entities.
The main objective of this merger is a strategic realignment of operations in streaming, broadcasting, and distribution. In their submission to the NCLT, Star and Novi emphasized that the consolidation aims to achieve economies of scale, enhance operational efficiencies, prioritize growth, optimize resource utilization, and reduce costs.
