BackTV18 and E18 to merge with Network18; entity to consolidate TV, digital news businesses
The move will consolidate the TV and digital news businesses of the Network18 group under one company and help create a platform-agnostic news media company with a footprint across languages, the company said
PremiumNetwork18 Media & Investments Ltd and TV18 Broadcast Ltd have announced a scheme of arrangement under which TV18 and E18, which owns and operates the Moneycontrol website and app, will merge with Network18.
The move will consolidate the TV and digital news businesses of the Network18 group under one company and help create a platform-agnostic news media company with a footprint across languages, it added. This will give shareholders a chance to participate in the media business of the group through a single listed entity, it said.
The merged entity will comprise the TV portfolio of TV18 (20 news channels in 16 languages and CNBCTV18.com), digital assets of Network18 (News18.com platform across 13 languages and Firstpost) and the Moneycontrol website and app. Viacom18, with its portfolio of JioCinema and 40 TV channels, will be a direct subsidiary of Network18, which will continue to hold its investment in BookMyShow.
The share exchange ratio stands at 100 shares of Network18 for every 172 shares of TV18 and 19 shares of Network18 for every share of E18.
A joint valuation report for the fair share exchange ratio was provided by PwC Business Consulting Services and Ernst & Young Merchant Banking Services.
“As consumers and advertisers increasingly gravitate towards omni-channel experiences across different aspects of their lives, having a deep and integrated presence across both TV and digital media will enable the merged entity to serve them better. Further, as Network18 group has been working towards convergence, an integrated entity for news gathering and dissemination is expected to result in cost and content synergies," the company said in a statement. It added that the board of directors of the respective companies approved the scheme of arrangement at meetings on Wednesday.
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