Network18 to sell Its shareholding in Newswire18; to receive Rs. 90 Cr

Network18 announced that it has entered into a definitive agreement with Samara Capital  to divest its entire stake in India’s premier  financial data and news terminal business – NewsWire18. This is in line with its stated objective of divesting non-core assets profitably to allow greater focus on its core television and digital businesses.

Network18 was the majority shareholder in NewsWire18, having incubated the company with the founding CEO, Pankaj Aher and his team. The total transaction will result in proceeds of Rs. 90 Crores for Network18 in consideration for divesting its entire stake in the business. The transaction is expected to add approximately Rs. 70 Crores to Network18’s consolidated pre-tax profit for the current quarter. NewsWire18 will also be rechristened over the next 90 days as a result of the transaction.

Announcing the  transaction, Raghav Bahl, Managing Director, Network18 said that, “The divestiture of Newswire18, India’s leading financial data and news terminal business is a reflection of our commitment to profitably monetize  non-core assets for  the benefit of  our shareholders and  to also facilitate the growth of these businesses to the next level. We are proud to have partnered with NewsWire18 in its journey thus far and are confident that Pankaj and his team will continue to excel and build one of the finest financial data businesses in India.”

Commenting on the deal, Sai Kumar, Group CEO, said, “In a few short years, NewsWire18 has grown into a leader in its space and we take great pride and pleasure in having written this wonderful growth story. The growth at NewsWire18 is a reflection of Network18’s business building skills and the value that our network eco-system brings to a business. We would like to give Pankaj and his team and Samara Capital our best wishes as they embark on the next phase of their journey.”

The divestment of NewsWire18 forms a part of a series of asset monetization transactions by Network18. Earlier during the year, Network18 had profitably sold its stake in one of the Capital18 investee companies – NetworkPlay  and then partially diluted its stake in India’s premier Digital Commerce asset  – Bookmyshow.com.

BMR Advisors acted as the sole transaction adviser to Network18.