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Network18 sells 20% in Bookmyshow in Rs 100-cr deal

Accel Partners has investments in Internet businesses including Flipkart and Myntra in India

Press Trust of India  |  New Delhi 

Broadcasting major Network18 Group today said it will sell 20% stake in the holding company of entertainment ticketing website Bookmyshow.Com in a Rs 100 crore-deal.

"The total transaction of Rs 100 crore is a combination of primary infusion of capital and secondary sale of shares from existing investors," Network18 said in a statement.

Network18 was the majority shareholder holding a 60% stake in Bigtree Entertainment, the holding company of Bookmyshow.Com.

Post the closure of the transaction with Accel Partners announced today, Network18 will continue to be the single largest shareholder in the company with a 40 per cent stake, it added.

"The secondary stake sale by Network18, post consummation will add Rs 45 crore to Network18's pre-tax profit and in line with the stated objective of reducing stakes in digital and other non-broadcasting assets," the statement added.

"After a phase of investment in building our digital and other non-broadcasting businesses, we believe that many of these assets have reached an inflection point and can now help in creating value for all our stakeholders," Network18 Managing Director Raghav Bahl said.

The dilution in bookmyshow.Com is a reflection of the commitment to profitably monetise these assets for the benefit of shareholders and also facilitate growth of these businesses to the next level, he added.

The stake sale at Bookmyshow.Com is the second in a series of asset monetisation transactions by Network18. Earlier this year, Network18 had sold its stake in one of the Capital18 investee – NetworkPlay to Bertelsmann.

The Network18 group operates a portfolio of digital content and e-commerce assets including moneycontrol.Com, ibnlive.Com, in.Com, firstpost.Com and HomeShop18.Com and holds a minority stake in Yatra.Com, a travel booking website.

The group also operates channels like CNBC-TV18, CNBC Awaaz and CNN-IBN.

"BookMyShow.Com caught our attention because it has become synonymous with online entertainment and ticketing. We are constantly striving to invest in businesses that assume a leadership position by driving the definition and growth of their respective categories," Accel India Partner Prashanth Prakash said.

Accel Partners has investments in Internet businesses including Flipkart and Myntra in India. Avendus Capital was the sole financial advisor to the transaction.

BookMyShow.Com is an online ticketing platform for tickets for movies, plays, concerts, entertainment performances and sporting events. The website draws more than seven million visitors and over 2 million tickets are booked a month.

The company is an exclusive ticketing partner for several sporting franchises in India including Formula 1, Indian Premier League, Aircel Chennai Open, Super Fight League and Yonex Badminton Championships. It has also expanded its footprint to international markets like Malaysia and New Zealand.

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First Published: Thu, August 23 2012. 19:22 IST