Group Members: Ashish Gawali Trupti Deomane Ketan Joshi Jash Mehta Prajakta Parab Sandesh Pakhare Nikhil Garudkar Akshay Gode

Group Members :
Ashish Gawali
Trupti Deomane
Ketan Joshi
Jash Mehta
Prajakta Parab
Sandesh Pakhare
Nikhil Garudkar
Akshay Gode
SGA Finance & Management Services Private Limited was
founded by Raghav Bahl in 16 February 1996
In 2006, it was converted to a public limited company.
The name of the company was changed from to

Network 18 Fincap Private Limited with effect from 12
April 2006.
Network 18 got listed on the Bombay Stock Exchange and

the National Stock Exchange on 2 February 2007.
In January 2012, RIL made an investment in
Network18s promoter group companies
The promoters, led by Bahl, used funds received from

the trust to infuse cash into Network18 and its
subsidiary TV18 Broadcast Ltd
RILs investment was made in the form of debentures

in Network18s promoter group companies controlled
by Bahl
The debentures can be converted into shares at any time within a 10-
year period since its issuance.
Network18 and TV18 together raised Rs.4000 crore through rights

issues in financial year 2012-13.
Promoter holding in Network18 rose from 48.3% to 73% after the

rights issue
By January 2012, RIL had made investments worth Rs.2,600 crore in

ETV channels and company owned a 50% stake in ETVs Telegu
channels and a 100% stake in all its other channels.
In 2014 RIL took over Network 18 for Rs 4000 Crores....

RIL got access to all the digital properties of the TV18
group including
IBNLive.com
Moneycontrol.com
Firstpost.com
Cricketnext.in
Homeshop18.com
Bookmyshow.com
and broadcast channels like Colors, CNN-IBN, CNBC-

TV18, IBN7 and CNBC Awaaz .
Network18s financials have improved considerably
since RIL invested in the company.
In the year till March 2012, before the investment, the

company reported operating losses worth Rs.270 crore
on revenue of Rs.1,952 crore.
In the year till March 2014, it turned profitable at the

Ebitda level, with a profit of Rs.98.8 crore on
consolidated revenues of Rs.2,692 crore.
Deal Mechanism
Strategic move to Impact on media Big business
use content for coverage of Modi interests get into
upcoming 4G Government media business
network
Changes In HRM
Network 18 cut costs and human-resources by around 30
per cent in each department.
Costs in each of these categories staffing,

production, and infrastructure had been cut
It was almost certain that contracts of over 150
employees in IBN 7, and over 200 employees in CNN-
IBN, would be terminated.
A channel source said that they were providing as
generous a compensation package as possible.
<1 year 1- 3 >3 year >5 year
2 months year 3 months Will be
of their 3 months of their eligible
Cost-to- of their CTC to get
Company Cost-to- package gratuity
(CTC) Company 45 days and other
package. (CTC) of salary. benefits
package.
May 2013 to February 2014
Dilip Venkatraman, CEO of CNN-IBN and IBN7, leaves the company followed by IBNLive
CEO Rajan Srinivasan.
Newer business heads were taking over:
Avinash Kaul - CEO of IBN Network
Durga Raghunath - Web18 CEO
28th and 29th May 2014

Network18 CEO B Saikumar quits. This is quickly followed by resignations from
Network18 COO Ajay Chacko and CFO RDS Bawa.
30th May 2014

The company's founder and managing director Raghav Bahl and his wife, a director at
the company, announced their exit as well.
RIL appointed HDFC chairman Deepak Parekh as an independent director on the Board
of the media and entertainment firm.
RIL has also appointed McKinsey senior advisor Adil Zainulbhai as independent director
and Network 18 Media & Investments (NW18)
The merger was totally of two different industries ,operational they stood
apart but complementary
Mr. Ambani wanted the media firm to be lean so laid off 300 employees
Synergies of media and telecom industry- access to
Network18s broadcast, digital and e-commerce content
Controlling stake in Indias biggest media firm- powerful tool to influence
news
The new network 18 group can act as a public relation agency for RIL
Broaden the portfolio into regional news and entertainment channels
New focus was given to distribution and business promotion cost- reduced
down 34 % to 25 % that of operational revenue
Latest strategy that is implemented in the NW 18 group is amalgamation
Amalgamation helped to reduce distribution, advertising and promotional
cost
Employee benefit and finance cost increased due to one roof structure
Main reason behind amalgamation is to reduce legal entities to reduce cost
Consolidation gives the economy of scales to reduce operational cost
Financials As On 31 March 2014
Network 18
NPBT 16.02 Crores
Depreciation And Amortization 82.7 Crores
EBITDA 98.81 Crores
Industry Multiple 12.61
Company Value 1246.10 Crores
Actual Deal Value 4000 Crores
Financials As On 31 March 2014
Network 18
Total Assets
6645.6 Crores
External Liabilities 2013 Crores
NAV 4632.5 Crores
Actual Deal Value 4000 Crores

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Group Members: Ashish Gawali Trupti Deomane Ketan Joshi Jash Mehta Prajakta Parab Sandesh Pakhare Nikhil Garudkar Akshay Gode

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In 2006, it was converted to a public limited company.

The name of the company was changed from to

Network 18 got listed on the Bombay Stock Exchange and

The promoters, led by Bahl, used funds received from

RILs investment was made in the form of debentures

Network18 and TV18 together raised Rs.4000 crore through rights

Promoter holding in Network18 rose from 48.3% to 73% after the

By January 2012, RIL had made investments worth Rs.2,600 crore in

In 2014 RIL took over Network 18 for Rs 4000 Crores....

and broadcast channels like Colors, CNN-IBN, CNBC-

In the year till March 2012, before the investment, the

In the year till March 2014, it turned profitable at the

Costs in each of these categories staffing,

28th and 29th May 2014

30th May 2014

External Liabilities 2013 Crores

NAV 4632.5 Crores

Actual Deal Value 4000 Crores

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