Case Type: Merger & Acquisition
Case Style: Interviewer Led
Industry: Sports & Entertainment
Case Type: Merger & Acquisition
Industry: Entertainment
Case by Bain & COmpany
The IPL (Indian Premier League) is a professional Twenty20 Cricket league in India usually contested between March & May of every year by eight teams representing eight different cities or states of the country. It is the most attended cricket league in the world. The brand value of IPL in 2019 was estimated to be $6.7 billion, according to Duff & Phelps.
Our client, Red Chillies Entertainment is exploring options to diversify its business holdings. As per the plan, they are considering the purchase of Kolkata Knight Riders (KKR), one of the top performing teams at IPL. 55% stakes in KKR are up for sale with an asking price of $100 million. You have been hired to evaluate this deal and make a recommendation to the client. What would you suggest?
Red Chillies Entertainment is an Indian film vfx and CGI production & distribution company established by Mr. Shah Rukh Khan and his wife Gauri Khan. Based in Mumbai, its a full-fledged film studio in India.
Additional information (To be provided only on request)
- Diversification objective is as follows –
- Improve top-line
- Improve brand image
- Pave path for future growth of the company
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This is an interviewer led strategy case where the candidate is required to help Red Chillies in making a M&A decision. Needless to say that final recommendation must include facts derived using appropriate quantitative & qualitative analysis.