NCLT greenlights Network18’s merger plans for TV18 and E18

In a significant development for the media industry, the National Company Law Tribunal (NCLT) has given the green light to Network18’s comprehensive merger plans for its subsidiaries TV18 and E18. This approval marks a crucial step toward consolidating the group’s broadcasting and digital media operations into a single, unified entity.

The Mumbai bench of the NCLT issued the approval on June 5, allowing Network18, TV18, and E18 to proceed with their composite scheme of arrangement. This decision mandates that the three companies secure consent from their equity shareholders and unsecured creditors. A meeting for these stakeholders is set for July 10, where they will vote on the proposed scheme. Importantly, the companies have no secured creditors, simplifying the approval process.

Network18, which holds a 51.17% stake in TV18 and a 91.89% stake in E18, aims to merge TV18’s broadcasting and digital media businesses with E18’s Moneycontrol business. This strategic consolidation is expected to create significant operational synergies, cost efficiencies, and new revenue opportunities.

TV18, a publicly listed entity on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE), will be dissolved without the need for winding up once all necessary approvals are obtained. This merger is anticipated to streamline Network18’s operations and enhance its market positioning.

Additionally, TV18 holds a 13.54% stake in Viacom18, which is concurrently undergoing a merger with Walt Disney’s Star India. This broader integration within the media landscape underscores the dynamic changes and consolidations taking place in the industry.

To ensure smooth proceedings, retired Supreme Court judge V. Ramasubramanian has been appointed as the chairperson for the meetings of unsecured creditors and equity shareholders. Should he be unavailable, L. Viswanathan, a senior partner at Cyril Amarchand Mangaldas, will step in as chairperson. B. Narsimhan, proprietor of BN Associates, will serve as the scrutinizer, with Venkataraman K., Partner at BN Associates, designated as his replacement if necessary.

The Network18 Group first announced the merger plans for TV18 and E18 with Network18 in December 2023. This consolidation is poised to enhance the group’s competitive edge in the rapidly evolving media sector by combining its broadcasting prowess with robust digital media capabilities.

Analysts and industry experts view this merger as a forward-thinking move that will likely set a precedent for similar consolidations within the media industry. The unified entity is expected to drive innovation, improve content delivery, and expand audience reach, solidifying Network18’s position as a leader in the media landscape.

The NCLT’s approval of Network18’s merger plans is a pivotal development in the company’s strategy to unify and strengthen its media operations. As the group prepares for the upcoming stakeholder meetings, the media industry will be closely monitoring this merger, anticipating the significant impacts it will have on the market and the future of broadcasting and digital media.  Media Noise