Network18, TV18 rally on RIL plans to close merger with Disney India in Q3

Shares of media majors Network 18 Media and Investments and TV18 Broadcast soared up to over 9 per cent in intraday trade on Tuesday on the NSE after their parent organisation Reliance Industries gave an update on their merger with Disney India.

Reliance Industries is a majority stakeholder in Disney India, holding about a 16 per cent stake in the company, and Viacom18 (another Reliance venture) holding 46 per cent. 

Network 18 Media and Investments surged to an intraday high of Rs 86.56 per share, rising 9.4 per cent, while TV18 Broadcast shares soared 5.6 per cent at Rs 44.80 per share on the NSE. 

The merger of Reliance Industries' media assets and the India business of global media giant Walt Disney is expected to be completed by the end of the third quarter of this fiscal, as per a regulatory filing by Mukesh Ambani's group. The merger is set to create the country's largest media empire worth over Rs 70,000 crore, according to reports. 

The Competition Commission of India (CCI) has already approved the merger of Viacom18 and Star India, with the National Company Law Tribunal (NCLT) sanctioning the scheme. 

The merger of Reliance's media entities, TV18 Broadcast and E18, with Network18 Media & Investments was sanctioned by the NCLT and made effective on October 3. 

"The companies are in the process of obtaining other requisite approvals for the completion of the transaction and transaction closer is expected in 3QFY 25," informed Reliance Industries on Monday in its quarter earning statement.

On September 27, the Indian government approved the transfer of licences for Non-News & Current Affairs TV channels from Reliance's media entities to Star India. Viacom18, which holds the media and entertainment business of Reliance Industries and Bodhi Tree Systems, is at the centre of this merger. 

Also Read: Reliance eyes completing merger with Disney's India business in Q3

Network 18 Media and Investments has a total market capitalisation of Rs 2,133.20 crore. Its shares are trading at a price to earnings multiple of -29.43 times and at an earning per share of Rs -2.69.  

Meanwhile, TV18 Broadcast has a total market capitalisation of Rs 7,611.76 crore. Its shares are trading at a price to earnings multiple of 172.41 times and at an earning per share of Rs 0.25.  

At 10:10 AM, the share price of Network 18 Media and Investments was trading 6.86 per cent higher at Rs 83.53 per share, while TV18 Broadcast shares advanced 4.95 per cent at Rs 44.51 a piece on the NSE. By comparison, the NSE’s Nifty50 dipped 0.29 per cent at 25,056 level.