Network18 and TV18 Consolidate in Mega Merger Deal

MUMBAI: Network18 Media & Investments Ltd and TV18 Broadcast Ltd have unveiled a strategic scheme of arrangement, marking a pivotal moment in the media industry. According to the announcement, TV18 and E18, the entity behind the renowned Moneycontrol website and app, will undergo a merger with Network18.

The primary objective of this move is to streamline the TV and digital news businesses within the Network18 group, culminating in the creation of a platform-agnostic news media powerhouse with a diverse linguistic footprint. Shareholders are poised to benefit from this consolidation, gaining access to the group’s media ventures through a singular, publicly listed entity.

The merged entity will encompass the extensive TV portfolio of TV18, featuring 20 news channels across 16 languages, including CNBCTV18.com. Additionally, it will integrate the digital assets of Network18, encompassing the News18.com platform available in 13 languages and the influential Firstpost platform. Notably, Viacom18, boasting JioCinema and a robust collection of 40 TV channels, will emerge as a direct subsidiary of Network18. The latter will also retain its investment in BookMyShow.

The share exchange ratio, a critical aspect of the merger, has been set at 100 shares of Network18 for every 172 shares of TV18, and 19 shares of Network18 for each share of E18. This strategic valuation has been substantiated by a joint report from industry stalwarts PwC Business Consulting Services and Ernst & Young Merchant Banking Services.

In a statement, the company emphasized the evolving preferences of consumers and advertisers, underscoring the increasing demand for seamless omni-channel experiences. The integration of TV and digital media within the merged entity is positioned to enhance service delivery to both consumers and advertisers. The move is expected to unlock synergies in costs and content, aligning with the Network18 group’s ongoing commitment to convergence.

The scheme of arrangement, greenlit by the boards of directors of the involved companies in meetings on Wednesday, marks a significant step towards a more integrated and efficient media landscape. As the industry witnesses this landmark consolidation, the Network18 group is poised to emerge as a dynamic force in the ever-evolving media landscape.