InvestorQ : Is it true that Sony TV is acquiring the Reliance TV network owned by Mukesh Ambani and what could be the implications?
Khushi Patel made post

Is it true that Sony TV is acquiring the Reliance TV network owned by Mukesh Ambani and what could be the implications?

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Anjana Aiyar answered.
3 years ago
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First and foremost, this is still in discussion stage and the talks are on. It has been reported that Sony Corp (which runs the Sony TV network) is currently in talks to acquire a stake in the Indian television network controlled by Mukesh Ambani. Sony is looking to tap a much larger body of content in the Indian market. The company is currently reported to be conducting due diligence into the Network 18 books to arrive at the likely valuation for the same. As of now the structure of the deal is not clear but it could either be a full merger or even a bid to acquire partial stake in the TV content business.

To begin with, the deal is likely to help both the parties. For example, it will help Sony bolster its local offerings and take on upstart rivals like Netflix and Amazon in the new age media space. For the Reliance group, it broadens the content palate as now the group will have access to global content of the highest quality. For Reliance, which has invested heavily in Jio, this is also a major addition to its ecosystem.

The timing of the deal is actually quite smart. Currently, the competition is heating up for paying viewers and India is surely a lucrative market if you see the initial success of Amazon Prime and Netflix. Both these global players are offering programs created locally to lure subscribers. This could be the best bet for RIL to take on this competition.

Sony has over 70 crore viewers in India and that gives the channel prime viewership. Network 18 also has a massive array of news and entertainment channels and the combination does help them to take on the new media challenge. Must be positive.



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