Times Group arm to invest up to $8 million in QYOU Media

The company intends to use the proceeds of the initial $2 million investment by BCI to build out its Indian operations including distribution contracts, ad sales, content licensing & branding efforts

by exchange4media Staff
Published: Mar 15, 2021 8:28 AM | 4 min read

Times Group arm Brand Capital International (BCI) has agreed to invest up to $8 million in QYOU Media, which operates in India and the United States producing and distributing content created by social media stars and digital content creators. Headquartered in San Francisco, BCI is the strategic investment arm of Indian media conglomerate The Times Group.

QYOU Media, led by The Q India, the company's Hindi language youth-oriented channel available to over 700 million homes and devices in India, has agreed to terms for an initial investment of $2 million subject to Reserve Bank of India (RBI) approval with an option to invest an additional $6 million investment from BCI. The common shares of QYOU Media to be purchased by BCI will be subject to a hold period of four months from the date of issuance of such shares.

The company intends to use the proceeds of the initial $2 million investment by BCI to build out its Indian operations, including distribution contracts, ad sales, content licensing, and branding efforts. The parties have agreed to consider in good faith further investments of $2 million in each of 2023 and 2024, as further described below. The parties have agreed that an executive representative of BCI or other Times Group entity will be granted an observer position with the Board of Directors of QYOU Media.

The 183-year-old media company reaches over 700 million Indians every month via 108 newspapers and magazines, 12 television channels, 73 radio stations, 50+ websites and apps, and 5000+ Outdoor sites. Brand Capital International has a pioneering investment model that supports the long-term brand-building efforts for businesses expanding in the Indian market.

Brand Capital International has agreed to purchase 9,025,000 common shares in the capital of QYOU Media at a price of Canadian $0.28 per share for an aggregate investment of $2 million (C $2,527,000). This proposal is subject to prior approval from the Reserve Bank of India by April 23, 2021.

Additionally, as part of the Initial Investment, BCI shall be granted the additional right, exercisable between January 1, 2022, and March 31, 2022, to purchase a further $2 million of common shares at a price equal to the greater of (i) the Applicable Discounted Price (as defined below) based on the volume weighted-average price of the common shares of QYOU Media on the TSX Venture Exchange (the "Exchange") for a period of twenty consecutive trading days ending on the day prior to the date of the notice of exercise of such purchase right; and (ii) $0.29.

The Applicable Discounted Price shall mean a discount of (i) 25% if the applicable closing price of common shares of QYOU Media is C$0.50 or less; (ii) 20% if the applicable closing price of common shares of QYOU Media is between C$0.51 and C$2.00; and (iii) 15% if the applicable closing price of common shares of QYOU Media is C$2.01 or above.

The parties were brought together by veteran India M&E entrepreneur Indus Global Media CEO Ken Silverman, a colleague of the partners of both companies.

The Brand Capital International model deploys The Times Group branding expertise and intellectual capital to help entrepreneurs with the intricacies of the advertising business – helping them to plan and build effective corporate branding strategies that lead to growth and enterprise value creation.

Brand Capital International President Neville Taraporewalla stated, "We have been following the growth of QYOU and they have a good understanding of the Indian audience. With this proposed partnership, we believe that we can bring a significant value to QYOU in India."

QYOU Media CEO and Co-Founder Curt Marvis added, "Having Brand Capital International, the strategic investment arm of The Times Group, as a partner with QYOU Media is a tremendously gratifying and important endorsement as we continue to move towards becoming a dominant brand for young India. Their strategic expertise and massive experience as India's largest media conglomerate make their entry as a new partner on our journey a truly important milestone. We look forward to working with the entire organization as we aim to build a large and loyal fan base of young Indians across television, OTT, and mobile."

Launched in 2017, The Q India is an advertiser and influencer marketing-supported Hindi language content brand, channel, and VOD provider. The Q delivers hit digital programming from Indian social media stars and leading digital video creators targeted to India's massive under-25 demographic. The channel has now become one of India's fastest growing youth entertainment brands reaching 4.4 Gross Rating Points(GRP) on BARC (Broadcast Audience Research Council) in February 2021.

With a growing library of over 850 programs, and beginning in April with the addition of DD Free Dish, the channel will reach an audience of 700 million via 88 million television homes with partners including TATA Sky, Airtel DTH, SitiNetworks, and DD Free Dish; 380 million OTT users via platforms including ShemarooMe, MX Player, ZEE5, and Dish Watcho; and 232 million users on mobile and digital platforms including Snap, JioTV, Airtel Xstream, Amazon Fire TV and Chingari. DD Free Dish is owned by Doordarshan, India's state broadcaster, and reaches 25% of India's Hindi-speaking market TV households.