- Billionaire Mukesh Ambani is in talks selling his news media assets of Network18 Media Group to India’s Times Group, as the richest man in Asia is planning to unload a business that has lost money, said people familiar with the issue.
- Network18 reported a group loss of 1.78 billion rupees ($25 million) in the year ended March, while the company reported a net debt of 28 billion rupees.
Billionaire Mukesh Ambani is in talks selling his news media assets of Network18 Media & Investments Ltd Group to India’s Times Group, as the richest man in Asia is planning to unload a business that has lost money, said people familiar with the issue.
Bennett Coleman & Co., Times of India’s publisher, is looking to hire advisors for due diligence on Ambani’s Network18 Media & Investments Ltd’s news properties, people said, asking not to be named as private discussions. Ambani is considering various options, one of the people said, ranging from an outright exit to a stake sale.
Talks are at an early stage and may not lead to a settlement, said the men, adding more suitors may emerge. The plan of the tycoon to dispose of his news assets comes as he pursues talks to sell to Sony Corp a stake in the entertainment division of Network18 that includes various channels of film, music, and comedy.
Last week, Bloomberg News reported that the Japanese giant is currently reviewing the Indian media company’s books and is exploring many potential deal structures. Network18 reported a group loss of 1.78 billion rupees ($25 million) in the year ended March, while the company reported a net debt of 28 billion rupees.
Network18 shares jumped up to 10 percent in Mumbai on Thursday and in nearly six months were headed for their highest level.
Ambani’s oil-to-petrochemicals conglomerate is in the midst of streamlining its operations and pivoting more toward relatively new ventures such as retail and technology for revenue. Last month, Reliance Industries unveiled a digital-services holding company that would eventually provide services from e-commerce to entertainment on a telecommunications network built over the last few years with about $50 billion in investment.
Network18, acquired by Reliance Industries in 2014, owns and operates 56 local channels spanning news and entertainment.
MoneyControl, News18, CNBCTV18.com, CricketNext, and Firstpost are among the news outlets. In Mumbai, shares of its affiliate TV18 Broadcast Ltd., which houses news channels, rose to 6.7 percent.
Shares in Reliance Industries reached a record high on Thursday, giving the company a market value of around $140 billion.
Unlisted Bennett Coleman, also known as the Times Group, owns TV channels, Times Now and ET Now included. It also publishes the Economic Times, a pink financial weekly, in addition to the Times of India.
