Homeshop18 & Shop CJ combine for India’s largest home-shopping platform

The Board of Directors of TV18 Home Shopping Network and Shop CJ Network approved entering into a definitive agreement to combine the businesses of both entities. The transaction is aimed at uniting two of India’s top home-shopping players to create the largest home-shopping platform in the country. 

The resultant benefits of scale shall better the growth prospects for the combined entity, allowing it to improve its standing in the TV home-shopping landscape and compete better with the challenge from e-commerce players. HomeShop18 has optimised its operations substantially since the challenges faced in the last year. We believe multiple synergies with respect to sourcing, marketing and delivery can be exploited through a combination with Shop CJ, which shall further accelerate this process. 

This combination shall be effected by way of a share-swap. The shareholders of Shop CJ shall be issued 25 per cent equity in HomeShop18, making Shop CJ a subsidiary of HomeShop18. Post the transaction, HomeShop18 shall cease to be a subsidiary of Network18 Media & Investments Ltd; however, Network18 shall continue to be the largest shareholder in the combined entity. 

HomeShop18 is a subsidiary of Network18 Media & Investments, with SAIF Partners, GS Home Shopping South Korea and OCP as co-investors. Today, HomeShop18 has a portfolio of over 14 million SKUs across multiple categories and a logistical reach of over 3,000 locations across India. 

Shop CJ Network (formerly known as Star CJ Network India) is a 50:50 joint venture between the South Korean home shopping major, CJO Shopping Co. Ltd. and the P5 Asia Holding Investments (Mauritius) Ltd, belonging to the Providence Equity Partners group.