RIL Enters Memorandum Of Understanding with TV18 and Network18

3rd January, 2012: Reliance Industries Limited has divested its interest in ETV Channels to TV18 Broadcast Limited (TV18). RIL announced that Infotel, RIL’s subsidiary has inked a Memorandum of Understanding with TV18 and Network18 Media and Investments Limited. By signing the MOU agreement, Infotel gets preferential access to all content of the above mentioned companies, for distribution through the 4G Network being setup by Infotel.
Infotel is geared up to set a pan India world class 4th Generation Broadband Network. Infotel aims at gaining the topmost position in content distribution through broadband technology. It will cater digital content ranging from entertainment, news, sports, weather, education, and many more genres to increase Broadband usage across the nation.
Reliance Industries Limited has investments of about Rs.2600 crores by its group of companies and holds interests in various ETV channels. A part of these investments will now be divested to TV18 Broadcast Limited. The MOU allows Infotel preferential access to (i) the content of all the media and web properties of Network 18 and its associates and (ii) programming and digital content of all the broadcasting channels of TV18 and its associates on a first right basis as a most preferred customer.
Network18 and TV18 are raising funds for the acquisition of ETV Channels through a Rights Issue. Independent Media Trust, setup for the benefit of RIL will fund the promoters of Network18 and TV18 to enable them to subscribe to the proposed Rights Issue.
Reliance further plans to study the various areas of the Indian Markets which include consumer insights and technological expertise. This will help foster the alliance to its best, which will prove accretive to the shareholders of RIL.
India’s leading TV content provider with nearly 25 channels put together with Infotel promises high quality ‘live TV’ experience to broadband customers. Infotel broadband subscribers will receive value added services from Network18’s web portals and e-commerce operations. The concord between these leading companies will leverage the value of Infotel among stakeholders.
About Reliance Industries Limited: Reliance Industries Limited is the flagship company of the Reliance Group of Companies, India’s largest private sector enterprise. RIL is India’s first private sector company which featured in the Fortune Global 500 list of ‘World’s Largest Corporations’. RIL holds the 119th position amongst the world’s Top 200 companies, in terms of profit. In 2010, Reliance Industries Limited was the second highest ‘Sustainable Value Creator’, for creating the most shareholder value in the world.

Reliance Industries has divested its interests in ETV channel to TV18 broadcast limited. This step comes as Reliance wants to strengthen the foundation before launching its 4G broad band services under the Flagship company Infotel.

Reliance Industries Ltd.,
Thane-Belapur Rd.,
Navi Mumbai.

This release was published on openPR.