MovieBeam bought by India’s Valuable Group
Former Movie Gallery service sold by Dar Capital
By Cindy Spielvogel -- Video Business, 7/11/2008
JULY 11 | MovieBeam, the set-top service that Movie Gallery shut down during its bankruptcy, has been purchased by Valuable Group, a company based in India.
The purchase was made through Dar Capital, a private equity investment advisory firm. The price was not disclosed. However in May, Movie Gallery asked the U.S. Bankruptcy Court in Richmond, Va., for permission to sell MovieBeam to Dar Capital for $2.25 million.
“Through this acquisition, Valuable will further establish itself as a leader in the media and entertainment space, allowing us to deliver ethnic and Hollywood content to homes and the hospitality industry worldwide,” said Sanjay Gaikwad, head of Valuable. “Films will be delivered in high-definition, and viewers will get access to library films as well as the latest releases on a first-day, first-show basis. We have earmarked an investment of $100 million over the next two years for the relaunch of this service in North America, U.K. and other overseas markets.”
The company plans to roll out its improved version of the service by the end of the year in three unnamed markets.
Valuable Group’s media and entertainment initiatives include UFO Moviez, which the company said is the largest satellite-based digital cinema network in the world. With the acquisition of MovieBeam, the company said it has expanded its worldwide offices to include a presence in Los Angeles and a state-of-the-art development facility in Seattle.
In making the MovieBeam announcement, Valuable said it bought the business “that Disney, Intel, Cisco and other private equity investors spent over $200 million in creating.”
Movie Gallery bought the service last year from the previous investors in a deal the retailer said at the time would cost it less than $10 million.
Movie Gallery shut down the service at the end of 2007. Some MovieBeam equipment went to another company, which recently prompted an anonymous letter to the bankruptcy court complaining about the terms of the deal.
Movie Gallery emerged from bankruptcy on May 20.
