Mobile business is getting bigger and bigger each passing day. The merging of small companies into larger entities through acquisitions is changing the face of the entire business industry. Mobile content service is now big business in India with more richness and variety. Indian companies too are moving with the global market moving out of the confines of the domestic market. One of the major reasons behind these tie ups is the regulatory changes that have made the whole process of acquisition much easier than ever before.
The prospect of growth for the content industry in India is to a size similar to the computer software industry, with massive opportunities for income and employment generation. The value added services market is big but is characterized by the presence of a number of small players instead of a few big ones. One of the major acquisitions of 2007 was that of Jataayu Software by Bharti Telesoft. Jataayu’s wholly-owned subsidiary in the US will be added to Bharti Telesoft’s existing operation across Africa, the Middle East, and the Asia Pacific region. For Bharti Telesoft, the acquisition of Jataayu is part of their growth strategy. The major components of the two companies will be fully integrated by March 2008. One of the major reasons for this acquisition is that both companies operate in the mobile VAS space, where Jataayu focuses on WAP applications and handset application businesses while Bharti Telesoft focuses on integrated value added services, namely core VAS, m-commerce, m-entertainment and business support solutions. In addition, their geographical presence is complimentary. Bharti has a strong presence in India, the Middle East, Europe, Africa and South Asia, and Jataayu, while being present in some of these markets, also has presence in Latin America, the US.
Geodesic too acquired 100% stake in Chandamama. Chandamama, to most Indians, has been a mix of pride, nostalgia and value which has been educating generations Indian customers for the last three generations. For Geodesic, such a property made a perfect fit, as it was falling within the entertainment genre but with a very strong footprint in educative content. After this acquisition, the mission of the dual entity is to provide content solutions across a wide cross section of platforms ranging from traditional to new technology online, mobile and other interactive media. Chandamama and Geodesic will strive to reach out to the largest number of Indians and drive content that is relevant, contemporary and timely.
The aim of these acquisitions is to grow global footprint, application reach, and to enhance their companies overall product portfolio. Their main strategy is to play in all areas of the mobile space, from delivering content to providing core platforms to support the ever-increasing range of VAS being developed, to delivering applications to the handsets. An acquisition is bound to have an effect on the management system of both the companies at stake. New people come and work in the form of an online head and the entire online editorial team, a revamped circulation/sales team and a marketing and business development team. However, the old team continues to work along with the new.