In August, reports suggested Disney was interested in buying out the India-based media company, which it already owned a majority stake in. UTV is the parent company of Ignition Entertainment, publisher of games like El Shaddai, Deadly Premonition, and Quarrel, which released last week on Xbox Live.
Disney will delist UTV's remaining shares from the stock market, enabling the company to fold UTV's business into its own. As part of the deal, Disney will also pick up UTV's Indiagames, which is one of the country's top mobile game companies.
UTV CEO Ronnie Screwvala has been named managing director of Disney India and will report to Andy Bird, Walt Disney International chairman.
"With the middle class expected to grow from 50 million to more than 500 million people by 2025, this market offers huge potential for us to deliver quality branded entertainment to consumers," he said.
It is unclear how this acquisition will affect Disney's gaming strategy moving forward. Disney's own gaming arm, Disney Interactive Studios, shut down Blackrock (developer behind Pure and Split Second) in July and Propaganda Games (Tron: Evolution) last year.