Sony, said sources, is expected to evaluate its options carefully owing to regulation around foreign direct investment in media
Japanese major Sony Corporation is in preliminary talks with Mukesh Ambani’s Network18 Media & Investments for a possible stake buy, making it the second attempt by the group in 10 months for a local acquisition.
In March, Sony had emerged the front runner to acquire a 20 per cent stake in Zee after the promoters of the latter said they were ready to offload up to half their shareholding to a strategic investor.
The talks had eventually fallen through over a valuation mismatch, forcing the Japanese major, which runs a bouquet of entertainment channels in the country, to look elsewhere, said persons in the know. Apart from a stake buy, some other options on the table include a merger of the entertainment businesses of Sony and Network18 Media, they said, as the Japanese major seeks to consolidate its presence in India, a market it considers key.
Sony, said sources, is expected to evaluate its options carefully owing to regulation around foreign direct investment in media. While 100 per cent FDI is permitted in the entertainment broadcast business here, FDI in news media is capped at 26 per cent, both in the broadcast and digital segments.
Sony may go for a 25-30 per cent stake in Network18, said persons in the know. Network18’s FY19 gross debt stood at Rs 3,045 crore, while net debt stood at Rs 2,860 crore. Based on Thursday’s close, Network18’s market capitalisation stood at Rs 2,900 crore, the data from the BSE shows…
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