What do Maa Directors get ?

 

As already informed, Sony is going to take over Maa and the due deligence ( physical verification and evaluation of assets and liabilities ) has already started. A formula for finding out Goodwill apart from valuation of Movies on hand is also arrived at.

 

Now the point is, how much do the Directors get ? Maa TV was valued at Rs.100 crores when new partners came in during 2006. Mr. Akkineni Nagarjuna Rao ( Nagarjuna ) and his brother-in-law Mr. Chalasani Ramesh were together given 20 percent share. However, share of 10 Rs was offered to them only @ Rs. 7 as a special price.Hence the duo were able to get 20 percent stake in Maa just for 14 crores. Later Mr.Chiranjeevi and Mr. Aravind also together took 20 percent but the price was at par, ie, 20 crores. Then entered Mr.Nimmagadda Prasad alias Matrix Prasad. He took 20 percent on paying Rs 20 crores. He offered 2 percent to his Finance Director Mr. C. Rama Krishna. This is what happened when the new partners came in. After this, the share of Mr. MuraliKrishnam Raju is reduced to 30 percent. However, he continued to be the one with the highest share and thus the post of Chairman. Some of the early promoters and investers were reduced to nominal shareholders and all of them put together constitute the remaining 10 percent.

 

Now the company is being valued at Rs. 400 crores. Hence Mr. Nagarjuna and his brother-in law's share will be valued at 80 crores and hereafter they will hold 10 percent in the company. So, Mr.Nag will be getting Rs 40 crores back and yet continue to be a 10 percent stakeholder ( 40 crores ) in Maa.In less than 2 years of his investment to the tune of just 14 crores. Similarly, Chiranjeevi and Aravind will get back 40 crores and still hold Rs 40 crores in Maa for their 20 crore investment. Same is the case with Matrix Prasad.

 

Murali Krishnam raju, the man who got name and fame with maa TV also got huge anmount of money at two stages.He has invested around 30 crores by the time of the Cinema gang's entry and got it valued at 100 crores. He took away the 60 crores brought in by the new comers and still hold his 30 crore share in the company.Now he gets Rs 120 crores and still have 15 percent stake ( 60 crores ) in the company.However, the saddest part of it is that he ceases to be the Chairman of Maa TV.