The appointed date for the merger will be February 1. The board of directors of the respective companies approved the scheme at their meetings held on Monday. (File)
Reliance Industries (RIL) on Monday announced the consolidation of its media and distribution businesses spread across multiple entities into Network18.
Under the scheme of arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments. The appointed date for the merger will be February 1. The board of directors of the respective companies approved the scheme at their meetings held on Monday.
The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly-owned subsidiaries of Network18. The restructuring will create value-chain integration, and render substantial economies of scale. The scheme will also simplify the group’s corporate structure by reducing the number of listed entities.
“The aggregation of a content powerhouse across news and entertainment (both linear and digital) and the country’s largest cable distribution network under the same umbrella will boost efficiency and exploit synergies, creating value for all stakeholders,” RIL said. “The media industry is accelerating towards being a B2C play, led both by market factors and through regulation. An integrated media play will further increase the breadth as well as depth of the group’s consumer touchpoints, and allow for retaining a larger share of the consumer’s spend on content,” it said.