Reliance Industries Ltd. (RIL) on 17th February announced consolidation of all its media and distribution businesses under one umbrella brand, Network18. Under the scheme of arrangement, TV18 Broadcast, Hathway Cable & Datacom, and Den Networks will merge into Network18 Media & Investments, which will be an integrated media and distribution company with a revenue of Rs. 8,000 crore.
The restructuring will create value-chain integration and render substantial economies of scale. It also simplifies the corporate structure of the group by reducing the number of listed entities. After this, Network18 will become one of the largest listed players in the sector. The merger shall be as on February 1, 2020.
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. According to the arrangement, every 100 shares of TV18, Hathway and Den would get 92, 78 and 191 shares of Network18.