Media firm Zee Entertainment Enterprises (ZEEL) today said it will acquire 80 per cent stake in technology startup Margo Networks for Rs 75 crore. The board of the company gave in-principle approval for acquisition of 80 per cent stake in Margo Networks Pvt Ltd at a consideration of Rs 75 crore, ZEEL said in a filing to BSE.
The investment by Zee values Margo at Rs 95 crore. Margo has developed a technology to set up server and compute infrastructure which will enable content consumption and has the potential to significantly drive up the digital content consumption, it said.
"Considering the strong synergies of the technology developed by Margo with the current business of the company, the board of directors of the company has approved acquisition of equity stake in Margo," ZEEL said. Margo is in the first year of its operation and the paid up equity capital stands at Rs 1 lakh. The investment by ZEEL is expected to be concluded within 30 days, it said. Shares of ZEEL closed at Rs 525.25, up 0.46 per cent on the BSE.- PTI