RIL To Spend Rs 4,000 Crore To Acquire Network18

In one of the biggest deals in the media sector, Reliance Industries Ltd (RIL) will acquire Network 18 Media & Investments, including its subsidiary TV18 Broadcast, for Rs 4,000 crore.

“The RIL board today (May 29) approved funding of up to Rs 4,000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments (NW18), including its subsidiary TV18 Broadcast (TV18),” the company said in a statement.

"IMT would use the funds to acquire control over NW18 and TV18, resulting in ownership of about 78% in NW18 and 9% in TV18, and to acquire shares tendered in the open offers," it added.

NW18 owns a suite of premier digital Internet properties, e-commerce businesses and differentiated broadcast content.

This suite includes In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com and Bookmyshow.com. The broadcast channels include Colors, CNN-IBN, 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.

Network18 Group and Reliance Industries had, in January 2012, struck a deal under which Reliance had to sell part of its interest in ETV channels and would get access to content and distribution assets of Network18.