MSM hopes Bollywood Megastar comp will help it hit the high notes

Tech Melissa Yeo
MSM hopes Bollywood Megastar comp will help it hit the high notes

The company behind ailing talent quest Megastar Millionaire has today announced a $1.59 million placement from its Indian partner in a bid to get out of its 14th week of suspended trading.

The move comes after MSM Corporation’s (ASX:MSM) initial talent quests failed to generate significant revenue in the December half.

MSM reported $5000 in customer receipts for the last three months of 2018. It raised at least $15 million last year and had $1.4 million left at the end of December.

But that hasn’t slowed its plans to push the competition format in India. The new placement from the Riva Group is touted as a show of support by its soon-to-be partner.

Under the deal — executed back in December — MSM will provide its brand, format and platform while Riva will provide funding, operations, PR support and access to its Bollywood connections.

“I believe that MSM/Megastar’s plan to revolutionise the live talent show/search industries, especially in geographies such as India, China and Southeast Asia, is a natural evolution within the global Entertainment industries,” Riva chair Paul Roy said.

The two are finalising a deal to launch of Megastar India under an exclusivity period to April 30.

Today’s fund-raising comes after a placement of $1.72 million announced earlier this year, a $10.5 million raise in August and another $3.4 million in November.

Last month MSM said it was considering crowd-funding as a potential funding route — and appointed a US crowdfunding advisor to raise capital and establish an “ecosystem” for performers to monetise their work.

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