India’s largest private company Reliance Industries Limited (RIL) announced its acquisition of Network 18 Group including its subsidiary TV18 Broadcast Ltd, country’s largest broadcasting network company on Thursday. The Board of Reliance Industries approved funding of Rs 4,000 crore to Independent Media Trust (IMT) for the acquisition of Network 18 Group. IMT will use the funds to acquire 78% stake in Network18, 9% stake in TV18 .
RIL is the country’s largest private sector company with revenues of 4 lakh crore and the Network18 Group is a media, entertainment and retain giant with interests in broadcasting, films, digital media, e-commerce, publishing business.
As per the sources, Network18’s managing director Raghav Bahl and his wife and director Ritu Kapur have quit the company along with CEO B. Sai Kumar, COO Ajay Chacko and CFO R.D.S Bawa.
As per the statement given by RIL, this deal acquisition will differentiate Reliance’s 4G business by providing a unique amalgamation at the intersect of telecom, web and digital e-commerce via a suite of premier digital properties.
In January 2012, Network18 Group and Reliance Industries had joined hands for a deal in which RIL would sell part of its interest in ETV channels and would get access to content and distribution assets of the electronic media group.