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    Network18 Group to consolidate TV, digital ops; merge TV18 Broadcast with Network18 Media

    Synopsis

    Under the proposed merger scheme, shareholders of TV18 Broadcast will get 100 shares of Network18 Media for every 172 shares held in the former. Shareholders of E18 will receive 19 shares of Network18 Media for every 1 share held in the former.

    Network 18 Group consolidationiStock
    MUMBAI - With a view to consolidate the television and digital news businesses, Network18 Group, owned by business tycoon Mukesh Ambani, has proposed the merger of TV18 Broadcast Ltd with Network18 Media & Investments Ltd through a share swap deal.

    Alongwith TV18 Broadcast, e-Eighteen.com Ltd will also be merged with Network18, the companies said through separate exchange filings.

    e.Eighteen.com Ltd or E18 owns and operates moneycontrol website and application.

    Under the proposed merger scheme, shareholders of TV18 Broadcast will get 100 shares of Network18 Media for every 172 shares held in the former.

    Shareholders of E18 will receive 19 shares of Network18 Media for every 1 share held in the former.

    The merger will enable Network18 to consolidate and further grow its business from a position of strength, the company said in a release.

    The merged entity will comprise the television portfolio of TV18 consisting of 20 news channels in 16 languages and CNBCTV18.com, digital assets of Network18 comprising News18.com platform across 13 languages and Firstpost, as also moneycontrol website and application.

    Viacom18 with its portfolio of JioCinema and 40 TV channels will be a direct subsidiary of Network18. Network18 will continue to hold its investment in BookMyShow.

    With the merger, an integrated entity for news gathering and dissemination is expected to result in cost and content synergies. The appointed date for merger is April 1, 2023.

    That a section of the market possibly had a whiff of the merger news development reflects in the stock price movements of both TV18 Broadcast and Network18 Media. While shares of TV18 surged nearly 8% and settled at Rs 56.20, those of Network18 climbed 8.4% up to Rs 98.45.

    Infact, both the stocks have risen for six consecutive sessions, with TV18 gaining as much as 35% in this period and Network18 adding about 21%.

    Intraday, TV18 Broadcast shares hit an 18-month high, and Network18 Media a 19-month high.



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    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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