Merger and Acquisition

Merger of

Group members
Name Roll No. _____________________________ _______ _

Anoop Rajguru

2010
Pawanjyot Singh Sabharwal 2010121

Harjyot Singh Sachdeva

2010122

Network 18

Network18 Media & Investments Limited is an Indian media conglomerate with interests in television, print, internet, film, mobile content and allied businesses. The company was incorporated as a private limited company on 16th February 1996 In 2006, it was converted to a public limited company

TV18

CNBC-TV18 was the First 24 hr business news channel in the country Launched in 1999 as CNBC India and was later re-christened CNBCTV18. CNBC-TV18 has maintained a dominant position in market share, despite the emergence of competition in recent years. The channel has consistently delivered more than 50% market share

IBN18

Reasons for merger

Economies of Scale
The restructuring would create the country's largest business news infrastructure, spread across eight business and two broadcast hubs (Mumbai and Delhi).

Eliminate competition.
Network 18 said it was merging the operations of business news channels CNBC-TV18 and CNBC Awaaz to save on costs. This move will realize significant cost synergies between the operations,and about 12% permanent positions in the company would be rendered surplus.

Type
Network 18 + IBN18 Horizontal Network 18 + TV 18 Horizontal

As all the three organisations are in same industry i.e., Television and info media.

Synergy of Merger

The Network 18 Group announced a restructuring plan to create a simplified two listed entity structure for the group in July 2010. Re-alignment of its business operation into 2 sections - Network 18 and New TV18 While Network18 will take care of the digital and publishing side of the business, New TV18 will look after the television assets of the group.

Network 18 Management

Valuation

Method used for valuation of organisations is Relative Valuation as the organisations are belonged to same industry

Share swap ratio

For every 100 shares held of TV18, shareholder will get 68 shares of IBN18 (New TV18) and 13 shares of Network18 For every 100 shares held in Infomedia18, shareholder would retain 100 shares of