RIL will get both the scale as well as the balance sheet benefit from this deal, according to Edelweiss
Abneesh Roy, Senior Vice President at Edelweiss Securities, is of the view that the deal could be a win-win deal for all the parties involved.
"With the deal in place, RIL would get last mile access although they would have to work with local cable operators. RIL will get both the scale as well as the balance sheet benefit," said Roy, adding that Hathway and Den Networks would benefit from RIL's scale as their balance sheets are stretched.
Reliance is going from content broadcasting to now distribution, which is positive. "The company will also get access to the entire customer wallet and can speed up its entire broadband foray," said Roy.
He added that the house currently has a neutral/hold call on both Hathway and Den Networks based on the current stressed balance sheet but they would be revising the target price based on announcements and the results.Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.