Case Name :      UTV and Disney: A Strategic Alliance (A)

Authors :           Atanu Adhikari, Rama Deshmukh

Source :             Ivey Publishing

Case ID :            910M43

Discipline :        General Management

Case Length :    20 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The case describes the dilemma faced by the senior vice-president of business development and strategy when deciding in 2006 whether UTV Software Communications Ltd. (UTV) should go ahead with a joint venture with Walt Disney Company (Disney) even if it meant selling Hungama TV, the leading children’s channel in India, to Disney. UTV was one of the large media companies in India and had diversified interests, including TV content, movies, animation and new media content. Although UTV had opened operations in the United States, the United Kingdom and other countries two years before, its international presence was limited. The CEO of UTV wanted UTV’s business to increase from Rs2 billion to Rs5 billion by 2008 and to Rs10 billion by 2010. This seemed possible if UTV went ahead with a strategic alliance with Disney. UTV anticipated that an alliance with Disney in India would help it increase its business in all other verticals globally. On the other hand, Disney, a large multinational, had several records of acquisition. The vice-president of UTV was concerned that Disney’s interest in a strategic alliance could be part of a long-term plan to acquire the company and benefit from its profitable business. Since UTV had established itself in the Indian media industry over the last 15 years, it could collaborate with different companies through its various verticals, thereby reducing the threat of losing its identity.<br><br>The case achieves the following learning objectives: 1) to explore various possibilities of strategic alliances with multinationals in order to expand business when it means selling off one part of the business toa multinational; 2) to assess the costs and benefits associated with cross-border mergers involving acquisitions of one part of the business and alliances in another part; 3) to identify business opportunities while integrating with a foreign entity; 4) to come up with “win-win” strategies that encompass multiple stakeholders of a business.