MxMIndia

Tag: Raghav Bahl

  • Network18 divests stake in Infomedia Yellow Pages and AskMe biz to Getit

    Network18 sells yellow pages and AskMe biz to Getit

    By A Correspondent

     

    The Network18 group’s divestment of stakes in non-core assets has taken another leap with the announcement of stake sale in its yellow pages and AskMe businesses to leading yellow pages company Getit Infoservices.

     

    The divestment is subject to shareholders’ approval.  Earlier during the current  financial year, Network18 had  divested its entire stake in Newsire18 and partially diluted its stake in Bookmyshow.com.

     

    Earlier today, the Network18 Group informed stockmarkets that it has entered into an agreement to profitably divest its premier local search businesses – Infomedia Yellow Pages and AskMe.  The combined operations of Getit will be referred to as ‘Getit Infomedia’ and  will be wholly owned by shareholders of Getit. Getit investors include Malaysia-based Astro group and Helion Venture Partners, a leading VC fund.

     

    Announcing the transaction, Raghav Bahl, Managing Director, Network18, said, “The divestiture of  Infomedia Yellow Pages and Askme, India’s leading local search businesses is a reflection of our  commitment to profitably monetize non-core assets for the  benefit of our shareholders and to also facilitate  the growth of these businesses to the next level. We would like to convey our best wishes to the team as they embark on the next phase of their journey.”

     

    Commenting on the deal, B. Sai Kumar, Group CEO, said, “We take pride and pleasure in having been a part of the Infomedia Yellow Pages and Askme businesses. We are delighted with this development and believe that the new operations will be a powerful solution provider for the SME space in India. We would like to wish  the team the very best as they continue to excel in their endeavours.”

     

  • In her new role, Ms Jatana will oversee legal operations and regulatory matters for all group businesses and joint ventures

    Network18 elevates Kshipra Jatana as group general counsel

    By A Correspondent

     

    Network18 Group has elevated Kshipra Jatana, EVP & Head Legal, News Networks to Group General Counsel. In her new role, Ms Jatana will oversee legal operations and regulatory matters for all group businesses and joint ventures including A+E Networks | TV18, Viacom18, HomeShop18 and India cast.

     

    Earlier, Ms Jatana was the General Counsel at Capital18, the group’s investment arm where she was responsible for deal structuring, legal and compliance for its portfolio investments.

     

    Commenting on this development, Raghav Bahl, Founder & Editor, Network18 said: “Kshipra has been instrumental in managing legal and structuring matters for us, across the group. While, our growth has been led by strong management teams at each of our businesses, the role played by group level talent in driving ‘Network’ synergies cannot be overemphasised.”

     

    Speaking on this, B Sai Kumar, Group CEO, Network18 said: “Apart from managing legal matters, Kshipra has played a critical role in structuring key ventures and transactions in the recent past. Her unique ability to work across businesses and address a range of challenges, positions her well for the task ahead, as the group moves into a new phase of growth.”

     

    Ms Jatana added: “It’s been a great journey and has been full of exciting milestones and the opportunity to work with some of the brightest minds in the industry. As a group we are well poised with a strong foot print across all segments of the industry.  The challenge is to enable a strong defensive framework that allows all our businesses to grow while meeting high standards of legal compliance.”

     

    She brings with her 17 years of work experience in the legal advisory and corporate law space. Prior to joining Network18, she was the General Counsel/Head of M&A at MIH India and has also worked with Star TV and AZB & Partners in the past.

     

     

  • The Board of Directors of TV18 Broadcast Limited (TV18) also approved the acquisition in ETV’s Hindi news channels, non-Telugu GEC Channels and ETV Telugu Channels

    Network18 and TV18 announce Rights Issues

    By A Correspondent

     

    Network 18 Media & Investments Limited, at the board meeting held on Tuesday, approved a Rights Issue of Equity Shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 60 per equity share.

     

    TV18 Broadcast Limited has approved a Rights Issue of Equity Shares to raise an amount up to Rs 2,700 crore at a price to be determined by the Board in compliance with regulatory requirements, but not exceeding Rs 40 per equity share.

     

    Network18, being the promoter and holder of majority equity in TV18, would be subscribing to about Rs 1,400 crore in the TV18  rights issue – therefore, once this subscription amount is netted out, the Net Aggregate Rights Issue of both Network18 and TV18 will result in a fund raising of about Rs 4,000 crores.

     

    The contribution of the current Promoter Entities of Network18 in this Net Aggregate Rights Issue of both Network18 and TV18 will be about Rs 1,700 crores.

     

    TV18 will utilise the Rights Issue proceeds to repay the existing debt, fund the acquisition of ETV channels and fund working capital needs. Network18 will utilise the Rights Issue proceeds to repay the existing debt and subscribe to the Rights Issue of TV18.

     

    The promoters of Network18 will be subscribing to their entitlement in full. They also reserve the right to subscribe to any unsubscribed public portion of the Rights Issues.

     

    Raghav Bahl, the founder and promoter of Network18 and TV18, has informed that promoter companies have entered into an arrangement with Independent Media Trust, a trust set up for the benefit of Reliance Industries Limited, to secure the funding required for this purpose. Further, Mr Bahl will continue to retain the management and 51 per cent control over Network18 and 51 per cent control over TV18 through Network18.

     

    Both the Companies will be filing the Draft Letters of Offer for their respective Rights Issues shortly.

     

    Mr Bahl said: “This is a truly seminal moment in the 18-year-old history of Network18/TV18. By inducting such a significant amount of equity, our balance sheets will become among the strongest in the industry. Also, by acquiring this strategic control over several ETV channels, TV18 will have a bouquet of leading television channels. Riding on the imminent digital wave, I am convinced that this acquisition is a significant move which will catapult TV18 into the forefront of India’s broadcasting industry. The proposed preferred access arrangement with Infotel Broadband will ensure that our content & services will be available on India’s premier technology distribution platform. On a debt free basis, both Network18 and TV18 hope to strengthen their position in various media segments like news & entertainment broadcasting, consumer internet, digital & print publications, filmed entertainment, home-shopping, e-commerce and other emerging businesses.”

     

    The Board of Directors of TV18 Broadcast Limited (TV18) during its meeting also approved the acquisition of 100 per cent interest in Hindi news channels, namely ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan and ETV Bihar and ETV Urdu channel (ETV News Channels); 50 per cent interest in ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya (ETV non Telugu GEC Channels); and 24.5 per cent interest in ETV Telugu and ETV Telugu News (ETV Telugu Channels).

     

    TV18 will have the Board and management control of ETV news channels and ETV non-Telugu GEC Channels. The Board has approved an outlay of up to Rs 2,100 crores for this acquisition. Legally binding agreements will be executed for this purpose. TV18 has an option to buy the balance 50 per cent interest in ETV non-Telugu GEC channels and an additional 24.5 per cent in ETV Telugu channels.

    Ernst & Young Pvt Ltd acted as advisors for financial and tax due diligence and valuation of the assets. The legal due diligence was carried out by Khaitan & Co.

     

    ETV is among the Top 5 most popularly viewed networks in the country. It was one of the first entrants in the regional markets and the channels have a considerable viewership base. One of the key strengths of ETV channels is their ability to attract and retain loyal viewers.

     

    On a combined basis, TV18 will be offering a unique mix of national and regional channels, catering to diverse genres like Hindi and regional entertainment, general news in English, Hindi and regional languages; business news in Hindi, English and regional languages; music, kids, devotional and infotainment channels.

    Including the soon-to-be-launched services/variants, this combined bouquet of over 25 channels will be the most powerful and potentially profitable TV operation in the country, especially since India’s television industry is on the verge of a digital revolution.

     

    As a part of the deal for acquisition of ETV Channels, Network18 and TV18 have also entered into a Memorandum of Understanding with Infotel Broadband Services Limited, a subsidiary of Reliance Industries Limited, under which the companies and their associates will have the right to distribute the content of all the media and web properties of Network18; and programming and digital content of all the broadcasting channels (including the ETV channels being acquired by the company) through 4G Broadband Network of Infotel, which shall have preferential access to this content on a first right basis as a most preferred customer.

     

    Infotel Broadband Services Limited is setting up a pan-India world class broadband wireless network, using state of the art technology. As per Images Year Book, more than 70 per cent of India’s population is below 35 years, and 50 per cent of the population is below 25 years of age. This young educated population will be keen to access quality content through wireless devices, thereby ensuring a rapid growth in subscribers similar to the growth of tele-density in India during the last ten years.

     

    The key advantage for millions of viewers will be the ability to enjoy an uninterrupted, high quality, 24-hour viewership, even while they are on the move. This tie-up with Infotel will enable Network18 and TV18 to build on their first-mover advantage for the distribution of their content through the latest broadband technology.

     

  • Reliance to invest over Rs 1,500 crore in TV18 Group

    Done deal? Mukesh Ambani to enable Raghav Bahl to pick up ETV. RIL likely to invest Rs 1.5k cr for 30% & 4G rights

    By R Sriram

     

    Reliance Industries is embarking on a major diversification into the media and entertainment sector with the Mukesh Ambani firm agreeing to fund a transaction that will result in a sizeable stake for itself in a company controlling two of the industry’s largest businesses, the Network18 Group and the Eenadu Group of channels run by the Hyderabad-based Ramoji Rao.

     

    People close to the transaction, which has a number of stages, told ET that an RIL subsidiary will help the promoter group of Network18 fund the rights issues of its two listed entities, Network18 Media and Investments, which runs the portal moneycontrol.com, and TV18 Broadcast Ltd, which operates a number of business and general news channels, notably CNBC TV18 and CNN-IBN.

     

    ET was not able to independently verify the amount to be invested by RIL, but people with direct knowledge of the transaction estimated it to be more than Rs 1,500 crore. The money from RIL will help Mr Raghav Bahl, the promoter of the TV18 Group, subscribe to the rights issues of both the listed companies, Network18 and TV18. The full amount expected to be raised through the rights issues is estimated at over Rs 3,500 crore.

     

    The boards of TV18 Broadcast and Network18 Media will meet on Tuesday to discuss plans for a rights issue. Mr Raghav Bahl did not respond to an email questionnaire; a Reliance group spokesperson also remained silent, while Mr B Sai Kumar, the CEO of Network18, declined comment.

     

    Times NOW and ET NOW, owned by Bennett, Coleman & Co. Ltd, the publisher of The Economic Times, compete with some of the television channels owned by Mr Bahl. The strategic investment by RIL will be used by the Network18 Group to retire debt and eventually buy out RIL’s stake in Eenadu, the pan-India vernacular language channels owned by Mr Ramoji Rao.

     

    RIL sources said they had invested Rs 2,600 crore in the Eenadu Group through a subsidiary giving it ownership of all businesses apart from its Telugu channel, in which it owns 49 per cent. The transaction, once complete, will result in RIL recovering most of its investments in Eenadu. Messages and an email sent after business hours to the office of Mr CH Kiron, the managing director of Ushodaya Enterprises, the holding company of the Eenadu Group, did not elicit any response.

     

    By its own admission before the Andhra Pradesh High Court, Reliance Industries has said it has invested Rs 2,600 crore in entities of Mr Nimesh Kampani-led JM Financial Group, which in turn had invested in Ushodaya Enterprises. The AP High Court is hearing a petition alleging the investment was a payoff to Mr N Chandrababu Naidu, the former chief minister of Andhra Pradesh, an allegation RIL has denied in its affidavit. RIL’s deal with Mr Bahl, likely to be announced on Tuesday, is expected to create a powerful national news and entertainment company spanning several regional languages as well as English and Hindi.

     

    RIL to get Exclusive Rights to Content

     

    RIL, people close to the transaction said, is expected to hold an economic interest equivalent to a 30 per cent stake in the promoter group of companies, with the original promoter Mr Bahl owning 51 per cent and all voting rights.

     

    Further, RIL will have exclusive rights to content from 30 channels and web properties of the two media houses, which will lend a competitive edge to its broadband services to be rolled out later this year.

     

    RIL is laying the groundwork for national 4G broadband services expected to be launched sometime this year. Content for broadband services is generally outsourced, but RIL will have an advantage over others with this transaction which will give its subscribers a wide variety of channels ranging from general entertainment to news and movies.

     

    Earlier on Monday, Mr Sai Kumar, in a letter to all employees of TV18, hinted at a solution to the group’s debt problems. “Let me also take this opportunity to tell you that we are very close to addressing our debt levels and related issues which have been reported by various media in the last few weeks. We will learn the details from Raghav pretty soon,” said Mr Sai Kumar, who took over as CEO after the sudden resignation recently of long-time CEO Mr Haresh Chawla.

     

    The money is likely to be invested directly in companies controlled by Mr Raghav Bahl, such as RB Holding Pvt Ltd and RB Investments Pvt Ltd. These companies own 30.34 per cent stake in Network18 Media while Mr Bahl holds 9.03 per cent in his name. Network18, in turn, is the main shareholder in TV18 Broadcast with a 49.98 per cent stake. The two companies have suffered heavily in the downturn triggered by the financial crisis of 2008-09. While revenue growth has been strong, profits have plummeted and borrowings have soared.

     

    At the end of March 2011, Network18 had debt of Rs 1,777.89 crore. Its profit for that year fell 87.27 per cent. TV18’s debt stood at Rs 550.54 crore while profit fell 17.40 per cent. The markets have punished the two companies. Network18′ s market cap is down 171.57 per cent since January 5, 2009 while TV18’s has fallen 560.23 per cent in the same period. Mr Bahl’s companies also have a distribution joint venture with the Chennai-based Sun Group, called Sun18. It is not known if Sun’s channels, among the strongest in the south, are a part of this arrangement. American giant Viacom too has a joint venture with Mr Bahl for producing movies.

     

    Source:The Economic Times

    Copyright © 2012, Bennett, Coleman & Co. Ltd. All Rights Reserved

  • History Channel plans to take factual entertainment mainstream with popular appeal and marketing strategies that grab the imagination.

    History launches with innovations blitz

    By Dhara Salla

    The History Channel launched its India edition on October 9 as part of a joint venture between TV18 and A+E Networks. The launch is a significant milestone in the Indian media space as it marks an alliance between dynamic television media conglomerate TV18 and factual entertainment biggie A&E Networks.

    Mr Raghav Bahl, Founder and Editor, TV18 said on the occasion of the launch, “We have always believed in making a difference in the domain that we work in and we believe that factual entertainment will emerge as one of the mainstays of the Indian television space.”

    Mr Haresh Chawla, Group CEO, Network18 said, “We believe that the Indian market is ripe for alternative formats and that is one of the reasons for us to bring in channels like History into this market. Factual entertainment is emerging as the new preferred choice across the world and the genre has the potential to become mainstream in India as well.”

    Ms Sangeetha Aiyer, General Manager Marketing, History, told MXM India, “By far this is one of the biggest media launches in the year and most definitely the biggest in the factual entertainment genre, in terms of impact, visibility, engagement, etc across traditional and new media.”

    As a channel, History has transformed itself by using very innovative formats that move away from the traditional concept of History being about dates, B&W footage, World War II etc. That DNA of innovation is being replicated everywhere including the marketing campaign. According to media reports, the marketing spend would be between Rs 150-170 million.

    The string of innovations began with the channel announcing its association with Bollywood star Salman Khan to be the face of the channel in an attempt to broad-base the appeal of History and the factual entertainment genre.

    In terms of Outdoor or Out of Home, innovative formats where the content seems to come alive and appear real will give passersby a first-hand taste of what History is all about. Some examples of engaging outdoor innovations are the Ice Road Trucker bridge replicated on a foot overbridge, Sliced where the anchor actually seems to ‘slice’ the hoarding, Swamp People, which has a brilliant life like cut-out of a crocodile/alligator, and Top Shot where smoke actually comes out of a gun which is part of the hoarding.

    On the programming and the content front, History channel has found out that Indian viewers across demographics are interested in experimenting with alternative forms of content, as far as the entertainment quotient is not compromised upon. The channel is being launched with universal themes that use the premise of history.

    Ms Aiyer said, “It will also announce a few big-ticket local productions that match international scale, very shortly.” The major chunk of the content is currently from the History US catalogue, with an appeal to viewer preferences in India. However, the channel is also experimenting with local production possibilities.

    How would this channel differ from the existing ones in this genre? Ms Aiyer said, “Firstly there is no other History channel in the country. History Made Everyday, the channel’s new positioning, encompasses the breadth of content and themes that History brings to Indian audiences. History here is not just about the past, it’s as much about people making History today.”

    AETN and Network 18 have come together as AETN 18 where Network 18 group holds 51 percent share and AETN holds 49 percent.