Network18 hits new high

Network 18 Media has hit a new 52-week high today at Rs.53 with an almost 3 times jump in volumes. Though off the day’s high, it remains strongly in the green, up over 4%.

The stock zoomed up after Reliance Industries yesterday announced that it will be acquiring control over the company through its subsidiary, TV 18 Broadcast for Rs.4000 crore. The Board of RIL has approved the funding of Rs.4000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary.

RIL will be buying 78% stake in and 9% stake in TV18. Currently, promoters have a 72.98%stake in Network18, while the rest is held by the public.  RIL and IMT has made an open offer to buy around 23 crore shares of Network 18 for Rs.41.04/share. It has also offered to buy 44.65 crore shares of TV18 at Rs.30.18/share.

This means that RIL will now own CNBC TV 18, IBN 7, CNN-IBN, CNBC Awaaz, IBNLive.com, In.com, Firstpost.com, Homeshop 18.com, Cricketnext.com, Bookmyshow.com and Colors.