Network18 will get Rs 90 crore from the deal. The transaction is expected to add approximately Rs 70 crore to Network18’s consolidated pre-tax profit for the current quarter.
The move is in line with its stated objective of divesting non-core assets profitably to allow greater focus on its core television and digital businesses.
Network18 was the majority shareholder in NewsWire18, having incubated the company with the founding CEO Pankaj Aher and his team.
Following the deal, NewsWire18 will be rechristened over the next 90 days.
Raghav Bahl, managing director of Network18, said, “The divestiture of Newswire18 is a reflection of our commitment to profitably monetising non-core assets for the benefit of our shareholders, and also to facilitate the growth of these businesses to the next level."
According to Sai Kumar, Group CEO, Network18, the growth of NewsWire18 is a reflection of its business building skills and the value that its network eco-system brings to business. “We would like to give Pankaj and his team and Samara Capital our best wishes as they embark on the next phase of their journey,” he said.
Earlier, Network18 had sold its stake in one of the Capital18 investee companies, NetworkPlay, and then partially diluted its stake in Bookmyshow.com.
BMR Advisors acted as the sole transaction adviser to Network18.