The share of TV18 Broadcast Ltd (NSE: TV18BRDCST) and Network18 Media & Investments Ltd (NSE: NETWORK18), part of Reliance Industries, rose by about 13 percent intraday on August 29.
The Competition Commission of India on the 28th of August approved the merger between the media divisions of Reliance Industries and Walt Disney Company.
The Competition Commission has approved this merger agreement with some amendments proposed by both parties. Under this merger agreement, the country’s largest media company worth more than Rs 70,000 crore will come into existence.
Due to this development, buying has increased in the shares of TV18 Broadcast Ltd and Network18 Media & Investments Ltd. The share of TV18 Broadcast Ltd opened with a gain of Rs 50.59 on the BSE in the morning.
During the day, it climbed 13 percent from the previous close price to a high of Rs 54.26. The price range for the upper end of the stock is 57.52 rupes with a circuit limit of 20 percent.
Similarly, the stock of Network18 Media & Investments Ltd opened strong at Rs 98.20 on the BSE in the morning. In the day, it increased by 10 percent from its previous close to the highest level of 106.01 rupees. The price range for the upper end of the stock is 115.46 rupees with a 20 % circuit limit.
The Announcement Of The Merger Came Earlier In The Year
The merger of Reliance Industries’ media unit Viacom18 and Walt Disney’s media unit Star India Private Limited was announced earlier in the year.
The Competition Commission of India said in a blog post posted on the social network X the fact that they had given its approval to the merger plan.
These include Reliance Industries Limited, Viacom18 Media Private Limited, Digital 18 Media Limited, SIPL as well as Star Television Productions Limited (STPL). It is also subject to the compliance of the voluntary amendments.
STPL is a company formed in the British Virgin Islands, which Walt Disney indirectly owns. In this agreement, Reliance and its associate units will hold a 63.16 % share in the company.
Walt Disney will have the remaining 36.84 percent stake. The media corporation that was created following the merger will include two streaming services as well as 120 TV channels.
Quick Fact
TV18 Broadcast
| Company name | TV18 Broadcast |
|---|---|
| Parent company | Reliance Industries |
| Intraday rise (Aug 29) | 13% |
| Merger approval date | August 28 |
| Merger companies | Reliance media divisions, Walt Disney Company |
| New media company value | ₹70,000 crore |
| Opening price (Aug 29) | ₹50.59 |
| Intraday high | ₹54.26 |
| Upper circuit price | ₹57.52 |
| Circuit limit | 20% |
Network18 Media & Investments
| Company name | Network18 Media & Investments |
|---|---|
| Parent company | Reliance Industries |
| Intraday rise (Aug 29) | 10% |
| Merger approval date | August 28 |
| Merger companies | Reliance media divisions, Walt Disney Company |
| New media company value | ₹70,000 crore |
| Opening price (Aug 29) | ₹98.20 |
| Intraday high | ₹106 |
| Upper circuit price | ₹115.46 |
| Circuit limit | 20% |
Viacom18 Media
| Company name | Viacom18 Media |
|---|---|
| Parent company | Reliance Industries |
| Other merger parties | Star India Private Limited, Star Television Productions Limited (STPL) |
| STPL formation location | British Virgin Islands |
| Reliance share post-merger | 63% |
| Walt Disney share post-merger | 37% |
| New media entity offerings | 2 streaming services, 120 TV channels |
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