On Thursday’s trading session, shares of TV18 group experienced a significant decline following the announcement of a joint venture (JV) between Reliance Industries Ltd (RIL), Viacom 18, and Walt Disney. The merger news impacted both Network 18 and TV18 Broadcast, which are integral parts of the Nifty Media index, leading to a 5% drop in their respective share prices.
At 10:30 am, Network 18 shares were trading 4.97% lower at 107.00, marking a decline of 5.60 points, while TV18 Broadcast shares slipped by 4.95% to 59.55, losing 3.10 points. The merger agreements delineate that post-merger, RIL will possess a 16.34% stake in the entity, with Viacom18 holding 46.82%, and Disney holding 36.84%. It’s noteworthy that RIL’s TV18 currently holds a majority stake in Viacom 18.
The broader Nifty Media index also faced a downturn, trading at 2,027.25, marking a decline of 42.05 points or 2.03%. Among the top gainers in the market were Jagran Prakashan, witnessing a 2.63% increase at 120.90, followed by Zee Entertainment, up by 1.54% at 164.50, and PVR INOX, which saw a marginal increase of 0.36% at 1,369.75.
Conversely, the top lowers included Network 18 and TV18 Broadcast, experiencing a significant drop of 4.97% and 4.95%, respectively. DB Group also faced a decline of 1.47% at 281.40.
However, amidst the bearish trend in TV18 group shares, Reliance Industries’ stocks showed resilience, advancing by 1.08% or 29.90 points, reaching 2,942.60.
In accordance with the press release issued by the involved companies, Nita Ambani has been appointed as the Chairperson of the newly formed JV, with Uday Shankar serving as the Vice Chairperson. This announcement marks a significant development in the media and entertainment landscape, with the consolidation of major players poised to reshape the industry dynamics in the foreseeable future.
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