Reliance Industries,Network 18 in ‘deal’

Raghav Bahl-controlled Network18 Group is expected to announce a mega deal tomorrow on its efforts to raise funds to pare its debt and fund a merger with one of the country’s largest regional television networks,Hyderabad-based Eenadu TV. Strong buzz that Mukesh Ambani of Reliance Industries Ltd is Bahl’s ‘white knight’ in raising resources pushed his holding company Network18 Media and Investments Ltd’s (NMIL’s) stock up 7 per cent in a more or less flat market today.

NMIL’s debt stood at Rs 1,430 crore as of September 2011. According to people familiar with the development,two Network18 companies,NMIL and TV18 Broadcast Ltd,would be involved in the deal. Eenadu,which has about a dozen regional channels and a news channel,is valued at beween Rs 2,500 crore and Rs 3,000 crore. NMIL and TV18 Broadcast together have a market capitalisation of Rs 1,600 crore.

Bahl did not respond to calls and messages. I Venkat,director on the Eenadu board,said he was unaware of the development. A Reliance Industries spokesperson did not take calls.

Network18 has news channels CNBC-TV18,CNBC Awaaz,CNN-IBN and IBN7,and owns 50 per cent stake in Viacom18 that runs Hindi general entertainment channel Colors and children’s channel Nickelodeon. The group also has interests in film production and distribution through Viacom18 Motion Pictures.