Reliance Industries to buy majority stake in Network18 Media
30 May 2014 |
India’s Reliance Industries is planning to acquire a majority stake in Network18 Media and Investment for $680 million.
Network18 Media is a media and television entertainment firm, and Reliance said it may use the company as a content provider for its planned 4G internet services.
Reliance will use its own Independent Media Trust (IMT) to facilitate the offer for 78% of Network18 and 9% of TV18, a Network18’s subsidiary.
Speaking to local reporters, Deven Choksey, CEO of brokerage KR Choksey Shares & Securities in Mumbai, said of the Network18 Media acquisition: “The broadband business, if developed right, has a very high potential of success and Reliance understands that.”
“The media properties of Network18 are a natural fit and have the potential to make them a differentiated content provider,” Choksey added.
Reliance has been expanding into different business verticals such as retail, finance and telecommunications, and first invested an undisclosed amount in Network18 Media and TV18 Broadcast in 2012.
In April this year, Reliance Industries signed its third infrastructure agreement with Reliance Communications, owned by brothers Mukesh and Anil Ambani, respectively.