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Crest forays into media software

Feb 16, 2000

Crest Communications is planning to enter the business of software production. The company has entered into a 50:50 joint venture with Vision Technologies, a leading South India based filmmaker. Crest is an entertainment house with presence in ad films, animation, graphics, television software and post–production facilities.

In the joint venture the company will cater to production activities that include live action or animated features and interactive multimedia programming.

What is not clear is the amount that Crest Communications will get for undertaking these activities as to whether it will be in the form of fixed fees depending on the amount of work done for the JV or is the company only entitled to dividends as and when the venture break even.

Market View:
Analysts are bullish on the stock primarily due to a change in the valuation of the media stocks themselves. Besides, over the past one year the company is also perceived to have got its act together with on organisational structure in place as well as orders from studios as Disney and Warner Brothers.


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