TV18 Broadcast and Network18 to merge assets
Indian telecom company TV18 Broadcast has announced its merger with Network18 in a deal valued at US$1.2 billion. Under the terms of the agreement, e-Eighteen.com Ltd has also merged with Network18’s assets.
The decision allows India’s richest man, Mukesh Ambani, to combine his digital and broadcast businesses under one Reliance brand. The deal will expand the company’s local market presence, reduce costs and increase corporate revenues. News portal Moneycontrol and streaming platform JioCinema are also part of the deal.
As part of the deal, Network18 has initiated the issue of 100 shares for every 172 shares of TV18. The latter cost more than Rs 57.2 each. Following the announcement, the value of the shares rose by 1.9% on the stock exchange.
Plans to merge TV18 Broadcast and Network18 have been in the works since 2020. In parallel, Reliance was in talks with Sony Pictures as another party to the deal. However, after a series of changes, the company decided against the merger and preparations for the process were finally abandoned in 2021.
Overview of TV18 Broadcast’s activities
TV18 Broadcast operates several national channels in India, including CNBC Awaaz and CNBC TV18. It also broadcasts content from Paramount Global and Warner Bros. Discovery.
In addition, TV18 operates regional news and entertainment channels. The company also reaches a global audience through its News18 India television network, which broadcasts news in English 24 hours a day.
TV18 is the controlling partner of media companies Viacom18 and AETN18. It owns an OTT platform, a production business and some television networks through them.
Scope of Network18’s business
Network18 Media Corporation is part of Reliance Industries, an energy conglomerate owned by Mukesh Ambani. The holding includes the following companies:
– TV18;
– Web18;
– Network18 Publishing;
– Capital18.
The media empire also includes publications such as Forbes India, Overdrive and the Firstpost website.
Network18 has been in business since 1996. In 2012, after the crisis, the company partnered with Reliance, which formed IMT. Through this company, investments have been made in Network18 and TV18 Broadcast.
Over time, Network18 acquired several regional companies, making it the leader in the Indian media market by 2013, ahead of another giant, Star India.
In 2014, conglomerate Reliance purchased Network18, followed by a rebranding in 2016. These changes affected the organisational structure and led to the renaming of channels and the renewal of licensing agreements to broadcast foreign networks.
