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Thursday, May 29, 2014

Reliance to acquire control of Network18 for Rs4,000 crore - Livemint

RIL to acquire control of Network18 for Rs4,000 crore

Network18 founder and chairman Raghav Bahl. Photo: Mint




New Delhi: In the biggest ever deal in the Indian media sector, Reliance Industries Ltd (RIL) will acquire control of Network18 Media & Investments Ltd , including its subsidiary TV18 Broadcast Ltd , for Rs4,000 crore.

RIL’s Board on Thursday approved funding of up to Rs4,000 crore to Independent Media Trust (IMT) of which RIL is the sole beneficiary, for acquiring control of Network18 and subsidiary TV18, the company said in a statement. RIL is to buy a stake of up to 78% in Network18, as well as a 9% stake in its subsidiary, TV18 Broadcast Ltd, the statement said..


The funding includes open offers to be made consequent to the acquisition, RIL added. “IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78 per cent in NW18 and 9 per cent in TV18 and to acquire shares tendered in the open offers,” it added. NW18’s media properties include websites In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com, Bookmyshow.com and TV channels including Colors, CNNIBN, CNBC TV18, IBN7 and CNBC Awaaz.


“This acquisition will differentiate Reliance’s 4G business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties,” RIL said.


In January 2012, the Raghav Bahl-led Network18 Group and RIL had joined hands for a multi-layered deal, under which the Mukesh Ambani-led firm would sell part of its interest in ETV channels and would get access to content and distribution assets of the electronic media group.


On Wednesday, Network18 said its chief executive officer (CEO) B. Sai Kumar had resigned, while a senior employee of the firm confimed that chief operating officer (COO) Ajay Chacko had also put in his papers.



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