India's leading company, Reliance Industries Limited (RIL) divested its stake in the ETV channels to TV18 Broadcast Limited (TV18). Regarding this, Infotel Broad Band Services Ltd ("Infotel"), a subsidary of RIL signed a memorandum of understanding (MoU) with Network18 Media and Investments and TV18 Broadcast to get access to all their content for its planned 4G broadband Internet venture.
“As per the Memorandum of Understanding, Infotel shall have preferential access to the content of all the media and web properties of Network 18 and its associated and programming and digital content of all the broadcasting channels of TV18 and its associates on a first right basis as a most preferred customer," said the filing to Bombay Stock Exchange.
The MoU comes in line RIL's plan to set up a pan India world class 4th generation broadband network using state of the art technologies, while digital content from entertainment, news, sports, music, weather, education and other genres will be key driver to increase consumption of broadband, added the filing.
Providing a win-win situation for both the involved entity, the deal would help TV18 group firms- Network18 Media and Investments and TV18 Broadcast to cut their debt. Besides, RIL has also agreed to fund the promoters of Network18 and TV18 to enable to subscribe to the proposed rights issue of Rs 2700 crore.
Following the buzz, the shares of the company surged 2.37 per cent to close at Rs 723.70.
Dion Global Solutions Ltd