Takover of Network18 and TV18: A drama unfolds as Mukesh Ambani takes charge

Yep. Arvind Kejriwal apparently was on the mark. Narendra Modi is most probably only a front, a stooge of the the real power centre in the country. The way Reliance has assumed supra-monopoly status, particularly within the media space, make no mistake it is Mukesh Ambani who call the shots under the garb of Modi Sarkar....

(TelevisionPost.com) For founder-promoter Raghav Bahl, it is all over. In an unprecedented swirl of events, Mukesh Ambani’s Reliance Industries Ltd (RIL) has taken charge of a media and entertainment empire that boasts of crown jewels like CNBC TV18, CNN-IBN and Colors.

In the process, there has been drama never witnessed before in Indian corporate history. The last couple of days has seen the exit of Network18 group CEO B Saikumar, COO Ajay Chacko and CFO RDS Bawa. More are to follow and the industry is expecting the announcement of Bahl’s exit any time now. Though the writing was on the wall ever since Bahl inked a deal with Ambani in 2012, nobody expected the end would come so early and in such an overwhelming way. India’s richest billionaire will have his stamp all over.

In 2012, nobody noticed a clause that would have allowed RIL to step in any time with full direct control. Even if they had, they hadn’t swallowed it in. The industry had given it a few more years, with Ambani indirectly calling the shots. One could have sniffed the change on Wednesday when Saikumar announced his resignation. Later in the evening, Chacko said he was quitting. Surprising as the day before, he had called TelevisionPost.com’s editor-in-chief to discuss about the company’s financial results (which was announced the same day).

No matter how prepared we all were, the big shocker came the next day. RIL said its 

“board had approved funding of Rs 4,000 crore (Rs 40 billion) to Independent Media Trust (IMT), of which RIL is the sole beneficiary,” 

for taking over Network18. IMT would use the funds to acquire control over Network18 and TV 18, resulting in ownership of about 78 per cent in Network18 and 9 per cent in TV18, and to acquire shares tendered in the open offer. Why get surprised? If you are Mukesh Ambani, you do not delay. RIL was just exercising its option to convert the Zero Coupon Optionally Convertible Debentures (ZOCDs) into equity shares of the target company, in this case Network18, anytime within 10 years.

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http://exitopinionpollsindia.blogspot.in/2014/05/takover-of-network18-and-tv18-drama.html