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TV18 & E18 to merge with Network18 – Media Sector Mega-Merger

07 December 20236 mins read by Angel One
Get Ready for a Media Revolution – The Inside Story of India's Biggest Corporate Union!
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As the wedding season brings joy and celebration, the corporate world is not far behind, with the biggest merger announcement grabbing the spotlight. This time, it’s none other than the formidable Reliance Group making waves in the media landscape.

In a strategic move, Network18 Media and Investments Ltd., a part of the Reliance Group, has set the stage for a significant consolidation by merging its television and digital news businesses. The merger involves TV18 Broadcast Ltd. (TV18) and the unlisted e-Eighteen.com Ltd. (“E18”, which owns and operates moneycontrol website and app) will merge with Network18, paving the way for a transformative integration that aims to redefine India’s media landscape.

The Nuptial Details: Network18 Unites TV18 and E18

Under the scheme of amalgamation, TV18 Broadcast Ltd. shareholders are set to receive 100 fully paid-up equity shares of Rs 5 each of Network18 for every 172 equity shares held in the TV18. Meanwhile, shareholders of the unlisted e-Eighteen.com Ltd. will receive 19 fully paid-up equity shares of Rs 5 each of Network18 for every 1 equity share held in the digital unit E18.

The merged entity is poised to bring together the TV portfolio of TV18, encompassing 20 news channels in 16 languages and CNBCTV18.com, with the digital assets of Network18, including News18.com across 13 languages and Firstpost. Additionally, the amalgamation includes the prominent Moneycontrol website and app.

Entertainment Extravaganza: Viacom18 Takes Center Stage

The entertainment unit Viacom18, with its rich portfolio of JioCinema and 40 TV channels, will become a direct subsidiary of Network18. Notably, the company will retain its investment in BookMyShow, a key player in the online ticketing and entertainment space.

Operational Synergies, Cost Optimization, and Revenue Upswing

The Mumbai-based conglomerate envisions that this consolidation will result in operational synergies, cost optimization, and increased revenue realization. By simplifying its holding structure, the merger aims to create India’s leading integrated news media conglomerate.

A Powerhouse in News Media

TV18, renowned for operating India’s largest bouquet of news channels across 16 languages, holds marquee properties such as CNBC TV18, CNN News18, and News18 India. On the other hand, e-Eighteen.com Limited operates the influential business news website, Moneycontrol.com.

This union is not merely a corporate strategy but a move to offer better reach to a vast audience, leading to enhanced advertising revenue. The all-stock deal consolidates Reliance’s broadcast and digital businesses, including the well-known business news portal Moneycontrol and streaming platform JioCinema.

The Journey Ahead: From Wedding Bells to Merger Announcements

As the wedding season unfolds joyous ceremonies, the corporate world is witnessing its own union of entities. The marriage of TV18, e-Eighteen.com, and Network18 is set to create an integrated media powerhouse, poised to dominate both television and digital realms.

The Board of Directors of the respective companies has already given their nod to this transformative merger. With the appointed date for the merger set as April 1, 2023, shareholders can anticipate a paradigm shift in India’s news media landscape.

The joint valuation report, provided by PwC Business Consulting Services LLP and Ernst & Young Merchant Banking Services LLP, supports the fairness of the share exchange ratio. With notable financial advisors and legal support, this merger isn’t just a corporate event; it’s a strategic move to shape the future of India’s media industry.

About the Company:

The companyTV18 Broadcast  Limited  is  the  broadcast  arm  of the media  conglomerate  Network18  Media  &  Investments  Limited.  TV18 operates the news channels like –CNBC TV18, CNBC Awaaz, CNBC Bajar, CNBC TV18 Prime HD, CNN News18, News18 India,and 14 regional news channels under the News18 umbrella.

TV18’s subsidiary, Viacom18 Media Private Limited houses a portfolio of entertainment channels such as Colors, Rishtey, MTV India, MTV Beats, Sports18, Comedy Central, Colors Infinity, Vh1, Nick, Sonic, Nick Jr and 10 regional entertainment channelsin six geographies under the brand Colors, including various HD feeds of entertainment channels. It houses the Group’s filmed entertainment business under Viacom18 Studiosand JioCinema -company’s OTT platforms.

Stock Price:

The stock price of Network 18 touched a three-digit mark on Wednesday of Rs 100.40 with this it recorded a fresh 52-week high and finally, it settled at Rs 97.60 up by 7.49 per cent on NSE. TV18 Broadcast also hit a fresh 52-week high of 56.90 on Wednesday and settled at Rs 56.50 up by 8.24 per cent. The stock of TV18 Broadcast has outperformed the stock price of TV18 Broadcast in the last one year. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.

 

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