The media sector is a great fit for 3i. Its mix of global and local influences is well-matched with our investment approach, which combines deep local and sector knowledge with a world-wide network.
From our current portfolio of more than 15 companies, four examples illustrate the strategies that media related businesses are using to compete successfully in a turbulent environment:
- Owning classic content and finding new ways to achieve the maximum value from it. Chorion owns some of the best-loved brands in children’s and detective fiction, including Mr. Men, Noddy and Agatha Christie. We’re working with the company to implement a development plan for each property that will see the brands expand to new markets and new channels.
- Leading the migration of a market from page to screen. Real estate listings are rapidly moving from print publications to the internet. In the mid-1990s, Poliris was one of the first to anticipate this trend. Its early-mover status has made it the market leader in France and the second-largest player in Europe. We’re working with the company as it continues to expand its product offering.
- Holding unique rights in a rapidly-growing market. By 2010, the value of the Indian entertainment industry is expected to rise from $5bn to $13.5bn. Nimbus produces TV programmes for many of India’s biggest broadcasters and holds highly-prized rights to key sporting events. Our 2005 investment allows us to support the company’s growth, using knowledge gained from our European media investments.
- Matching the scalability of the internet with sustainable consumer loyalty. Sulake is an interactive entertainment company that develops, publishes and distributes multiplayer online communities and games for an international market. The company’s leading brand franchise, Habbo Hotel, an online game environment designed for teens, has become one of the most popular and fastest growing teen-focused websites in the world. Habbo has accumulated over 40 million registered habbo characters with 6.5m monthly unique visitors worldwide
One of our previous investments, the YBR Group, was a truly ground-breaking deal that saw us acquire separate directories business in a range of European countries. In a complex, cross-border transaction, we merged the businesses, creating an international operator with scale and balance. We sold YBR Group for €1.83bn, in a deal which won Exit of the Year at the Acquisitions Monthly awards in 2006.
