Sony Corporation is going to buy stake in Mukesh Ambani’s Network18 TV Media Group. They are currently in talks about combining their entertainment business in the Indian Television company, as the Japanese corporate giant wants to establish itself in the Indian market due to the booming demand for Indian content in the south Asian Nation.
The Tokyo-based company Sources said Sony is conducting due diligence and a deal could be in the works as early as next month. Sony is considering several potential deal structures, including a bid for the company or a merger of its own Indian business with Network18’s entertainment channels, one of the people said.
Talks are at a preliminary stage and may not result in a transaction, the people said. “Our company evaluates various opportunities on an ongoing basis,” a spokesman for Ambani’s Reliance Industries Ltd., said in an email, declining to comment further.
The successful deal will benefit Sony by boosting its local offering and Mukesh Ambani getting access to the International content.
Sony operates in the South Asian country through Sony Pictures Networks India, which has a bouquet of channels including Sony Entertainment Television, reaching over 700 million viewers in India. While TV18 Broadcast owns and operates 56 channels in India spanning news and entertainment. It also caters to the global Indian diaspora through 16 international channels.
Interestingly, Sony Corporation was in talks with Shubhash Chandra-owned Zee Entertainment Enterprises but failed due to the differences overvaluation in April 2019.