Times Internet, the digital arm of the renowned Times Group, has orchestrated a series of strategic divestments, yielding a lucrative windfall of nearly $1 billion since the inception of its selling spree in 2022. Amidst a dynamic digital landscape characterized by evolving consumer preferences and market dynamics, Times Internet’s divestment strategy underscores its nimbleness and astute business acumen.
Strategic Divestments: A Closer Look
At the heart of Times Internet’s divestment narrative lies a portfolio of digital properties that have attracted considerable attention and investor interest. The monumental $700 million acquisition of short video platform MX TakTak by ShareChat in February 2022 stands out as a watershed moment, epitomizing the value proposition embedded within Times Internet’s digital ecosystem.
In a testament to its diversified portfolio, Times Internet orchestrated the sale of its online restaurant table booking service platform, DineOut, to foodtech giant Swiggy in a deal valued between $150 million to $200 million, further augmenting its financial reserves and strategic positioning within the digital realm.
Furthermore, the divestment saga continued with Mensa Brands’ acquisition of three flagship brands – MensXP, iDiva, and Hypp – underscoring Times Internet’s commitment to unlocking value and nurturing innovative ventures within its ecosystem. Although the exact deal size remained undisclosed, industry estimates pegged the transaction value in the vicinity of $100 million, bolstering Times Internet’s financial stature and market prominence.
The recent departure of wealthtech startup ET Money from Times Internet’s fold, following its acquisition by wealth management platform 360 One WAM in a $44 million cash and stock swap deal, further accentuates the digital giant’s strategic realignment and focus on core competencies.
Evolving Dynamics and Strategic Imperatives
Amidst the backdrop of mounting losses and declining ad revenues, Times Internet’s divestment strategy assumes paramount significance, offering a pathway to financial resilience and strategic agility. With losses surging to INR 490 crore in the financial year 2022-23 (FY23), juxtaposed against a 4.5% year-on-year (YoY) decline in online advertising revenue, Times Internet’s divestment initiatives emerge as a pivotal response to evolving market exigencies and operational imperatives.
Future Trajectory: Navigating New Frontiers
As Times Internet navigates the intricacies of a rapidly evolving digital landscape, the impending sale of its video streaming platform MX Player to ecommerce behemoth Amazon in a $100 million deal portends a new chapter in its growth trajectory. Armed with a formidable war chest and a keen focus on strategic realignment, Times Internet is poised to unlock new avenues of growth and value creation, propelling its digital ecosystem to unprecedented heights of success.
