Reliance Industries is consolidating its media and distribution properties under a single entity, making Network 18 the vanguard of the conglomerate’s advance in the media and entertainment business.
India’s largest private sector company by market value said that, as a result, Network 18, one of India’s largest listed media companies, will become an entity with about Rs 8,000 crore in annual revenue and benefit from substantial economies of scale.
“The aggregation of a content powerhouse across news and entertainment (both linear and digital) and the country’s largest cable distribution network under the same umbrella shall boost efficiency and exploit synergies, creating value for all stakeholders,” Reliance said in a statement on Monday after the boards of TV18 Broadcast, Hathway Cable & Datacom, Den Networks and Network18 Media & Investments met to approve the consolidation.
For every 100 shares they own, shareholders of TV18 Broadcast will receive 92 shares of Network 18. Hathway shareholders will get 78 shares of Network18 and Den shareholders 191 shares of Network18.