Network18, TV18 in Spotlight as RIL Nears Disney India Merger in Q3FY2025

Introduction

Share Price of Network 18 Media and Investments, saw a sharp uptick in yesterday’s trading session, breaking past their 20-DMA (20-day moving average). On October 16, TV18 Broadcast shares jumped about 7%. The surge came with a notable increase in volume on the NSE. This rise in both price and volume can be traced to the latest update from Reliance Industries on their highly anticipated merger with Disney India.

Merger Updates from Reliance and Disney India

The parent company, Reliance Industries, holds a significant 16% stake in Disney India, while Viacom18, another Reliance-owned venture, controls 46%. The merger between Reliance’s media assets and Disney India is set to create a media behemoth valued at over Rs 70,000 crore. According to recent reports, the merger is expected to conclude by the end of the third quarter of FY25. This news has been a key driver behind the surge in stock prices for both Network 18 and TV18.

Regulatory Approvals in Place

Regulatory hurdles have been largely cleared for the merger. The Competition Commission of India (CCI) has approved the merger between Viacom18 and Star India. Additionally, the National Company Law Tribunal (NCLT) has sanctioned the scheme involving Reliance’s media companies, TV18 Broadcast and E18, with Network18 Media & Investments. This paves the way for the transaction to be completed by Q3FY25.

Implications of the Merger

The combination of these entities will create India’s largest media conglomerate, with extensive reach across TV and digital platforms. This consolidated structure promises significant operational synergies, cost optimizations, and new revenue streams. The deal further strengthens Viacom18’s foothold in the media and entertainment industry, placing it at the forefront of India’s evolving media landscape.

Government Approvals and Future Outlook

On September 27, the Indian government gave its nod to transfer licenses for Non-News & Current Affairs TV channels from Reliance’s media arms to Star India. Viacom18 remains central to this merger, and with all key approvals in place, the media landscape in India is set for a major transformation.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.