Reliance Industries announces merger of Den and Hathway into Network18 Media

Reliance Industries announced a 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 shall be 1 February 2020. The Board of Directors of the respective companies approved the Scheme of Amalgamation and Arrangement at their meetings yesterday.

The broadcasting business will be housed in Network18 and the cable and ISP businesses in two separate wholly-owned subsidiaries of Network18. The restructuring shall create value-chain integration, and render substantial economies of scale. The Scheme shall also simplify the corporate structure of the group by reducing the number of listed entities.

The media industry is accelerating towards being a B2C play, led both by market factors and through regulation. An integrated media play shall further increase the breadth as well as the depth of the group’s consumer touchpoints, and allow for retaining a larger share of the consumer’s spend on content.

Shareholders of all the four companies will benefit from streamlining of operations and strategy, focused management, and reduction of risk through consolidation.

Network18:

• Will be an integrated media and distribution company with a revenue of ~Rs. 8,000 cr.
• Will scale-up as one of the largest listed players in the sector.
• Will be net-debt free at the consolidated level, providing a solid base for growth as well as improved shareholder returns.
• Will benefit from a balanced mix of cyclical and annuity revenues to unlock growth while ensuring stability.
• Will create an eco-system for growth opportunities in digital, broadcast media, cable and broadband.

The consolidation of cable businesses of Den and Hathway in one entity will leverage the combined strength of the over 27000 local cable operator partners who act as the touchpoints to over 15 mn households in India; delivering localized, people-friendly and ultra-fast customer services.

The combined Broadband entity will serve over 1 million wireline broadband subscribers across the country.