RIL’s media, distribution business to be merged into Network18

NEW DELHI: Reliance Industries (RIL) on Monday introduced consolidation of all its media and distribution companies beneath one umbrella model ‘Network18’. Underneath the scheme of association, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Community18 Media & Investments, which might be an built-in media and distribution firm with a income of Rs 8,000 crore.
The restructuring will create value-chain integration, and render substantial economies of scale. It additionally simplifies the company construction of the group by lowering the variety of listed entities, stated an announcement by TV18 Broadcast.
This may scale up Community18 “as one of the largest listed players in the sector”, the assertion added. “The appointed date for the merger shall be February 1, 2020,” it stated. The board of administrators of the respective corporations authorised the scheme of amalgamation and association at their conferences held on Monday, it added. “The broadcasting business will be housed in Network18 and the cable and ISP (internet service provider) businesses in two separate wholly owned subsidiaries of Network18,” it added.
Moreover, the consolidation of cable companies of Den and Hathway into one entity will leverage the “combined strength of 27,000 local cable operator (LCO) partners who act as the touchpoints to 15 million households in India”, it added. The mixed broadband entity can even serve one million wireline broadband subscribers throughout the nation. In response to the scheme, each 100 shares of TV18, Hathway and Den would get 92, 78 and 191 shares of Community18.

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