Reliance Industries Ltd is set to finalize its merger with Disney’s India operations by the close of Q3 FY25, forming India’s largest media conglomerate, valued at over ₹70,000 crore ($8.5 billion), according to regulatory filings.
With approvals from the Competition Commission of India (CCI) and the National Company Law Tribunal, Reliance Industries confirmed in its latest quarterly report that the regulatory hurdles for the merger have been cleared.
“The merger of TV18 Broadcast Ltd. (TV18) and e-Eighteen.com Ltd. (E18) with Network18 Media & Investments Ltd. (Network18) was sanctioned by the National Company Law Tribunal, Mumbai Bench, and became effective on October 3, 2024,” the company said in its Q2 results.
The companies are in the process of securing additional required approvals, with the “record date for determining the equity shareholders of TV18 and E18 entitled to receive Network18 equity shares set for October 16, 2024,” the report added.
On September 27, the Indian government approved the transfer of licenses for non-news TV channels from Reliance to Star India, a key step in the merger, according to reports.
Upon completion, Reliance and its affiliates will hold a 63.16% majority stake in the newly merged entity, while Walt Disney will retain a 36.84% shareholding. Reliance has committed to investing ₹11,500 crore ($1.4 billion) to boost the joint venture.
Nita Ambani will chair the new venture, with media honcho Uday Shankar as the vice-chair. The combined company will have two streaming platforms and 120 television channels, including renowned brands like Comedy Central, MTV, Nickelodeon, and Star network channels.
Private equity firm Odyssey is reportedly in advanced negotiations to acquire Honeywell’s face mask unit, a potential deal valued at around $1.5 billion. This acquisition marks a strategic move by Odyssey to capitalize on the surging demand for personal protective equipment (PPE), driven by the global pandemic. The deal would be a significant milestone in the PPE industry, as face masks have become an essential commodity worldwide.
The ongoing talks, initially reported by Bloomberg News, suggest Odyssey’s growing interest in expanding its investment portfolio within the PPE sector. Honeywell, a global conglomerate known for its diversified product offerings, including aerospace systems and engineering services, has played a key role in meeting the massive demand for PPE during the COVID-19 crisis.
While the reasons behind Odyssey’s interest in Honeywell’s face mask division remain unspecified, the acquisition is seen as a calculated effort to tap into the lucrative market. The surge in demand for PPE since the pandemic began has transformed the sector, making it an attractive investment opportunity for private equity firms.
PPE Market
If the deal proceeds, it could have broader implications for both companies and the PPE market. Honeywell’s face mask unit, known for its production capacity and established reputation, has been a leader in addressing global PPE needs. Odyssey’s acquisition could further shake up the competitive landscape as private equity firms continue to show interest in PPE-related assets.
This is not the first time a private equity firm has targeted the PPE industry. In 2016, Blackstone acquired a majority stake in Ansell Limited’s industrial and medical gloves business for $600 million, a deal that highlighted the profitability of the sector even before the pandemic. Odyssey’s potential acquisition of Honeywell’s unit could be viewed in a similar light, setting the stage for more deals as the industry continues to expand.
While the deal is still in its negotiation phase, the final terms could evolve as discussions progress. The outcome will not only impact Odyssey’s investment portfolio but also shape Honeywell’s future business strategy. Industry stakeholders are watching closely, as this acquisition could set a benchmark for future investments in the PPE market.
Airtel is likely to acquire Tata Play at a valuation comparable to the recent deal with Temasek, sources close to the matter revealed. Initially, Tata Play had planned for an initial public offering (IPO) and even filed for one in 2022, but the plan was shelved last August.
Launched in 2006, Tata Play currently boasts 20.77 million subscribers, securing a 32.7% share of India’s direct-to-home (DTH) market, according to data from the Telecom Regulatory Authority of India (TRAI) for March. Bharti Telemedia, which operates Airtel Digital TV, holds a 27.8% market share, positioning it as the second-largest player in the sector.
While the broader DTH industry faces challenges, Airtel Digital TV has managed to grow its subscriber base, adding 190,000 net users in the June quarter, marking three consecutive quarters of growth. Meanwhile, cash-strapped competitors like Dish TV (20.8% market share) and Sun TV Direct (18.7%) are struggling to expand.
Tata Play Broadband, marketed under Tata Play Fibre, has 480,000 subscribers. Airtel Digital TV has established a strong presence in regions like southern India, Maharashtra, and West Bengal.
Strategic Implications
Industry analysts see the acquisition as a significant move by Airtel to counter Reliance Jio’s aggressive strategies in content and distribution. “This deal is about convergence,” said one expert. “Once telcos enter a customer’s home, they can offer bundled services—DTH, broadband, and IoT—securing customer loyalty while potentially offering content for free.”
However, challenges remain, particularly around valuation. Global DTH businesses have been facing headwinds, and analysts expect Airtel to push for a discount, citing the industry’s stagnation and the capital requirements for Tata Play’s broadband expansion.
Challenges ahead
Tata Play’s financial situation has worsened, with its consolidated net loss widening to Rs 353.8 crore in FY24 from Rs 105.25 crore in FY23, according to filings with the Registrar of Companies. The DTH segment alone reported a loss of Rs 247 crore, compared to a Rs 20 crore profit the previous year. Revenue dropped by 6.1% to Rs 3,982.57 crore.
In contrast, Airtel Digital TV reduced its net loss to Rs 76 crore in FY24 from Rs 349 crore the previous year, with a slight increase in revenue to Rs 3,045 crore.
Operational hurdles tied to the merger are also anticipated, particularly in satellite infrastructure. Airtel relies on SES satellites, while Tata Play uses GSAT. Consolidating these platforms could be costly and may risk customer churn, as seen in Dish TV’s merger with Videocon d2h, which operated on different satellites.
Moreover, the telecom industry is grappling with large pending licence fees. Bharti Telemedia faces potential liabilities of Rs 5,580 crore, with Rs 3,426 crore already provisioned. Tata Play, too, has received demand notices amounting to Rs 3,628 crore, including Rs 1,401.66 crore in interest. The outcome of these legal battles could impact the final deal terms.
Otherwise, the pay-TV sector has been undergoing significant consolidation, spurred by the merger of Disney with Reliance-owned Viacom18. The newly merged entity is expected to wield considerable influence over content distribution and advertising.
As the DTH industry faces increasing pressure from over-the-top (OTT) platforms, Airtel’s potential acquisition of Tata Play could be a pivotal moment, helping Airtel better compete with Reliance Jio’s growing dominance. All eyes are on the final valuation and the operational challenges ahead.
In a shift in the legal information landscape, Thomson Reuters, the multinational media conglomerate, has announced that it is selling its FindLaw business to Internet Brands.
FindLaw, a prominent player in the online legal information sector, offers a wide array of resources including legal news, blogs, and comprehensive information on state and federal laws. The decision to sell FindLaw comes as the growth rate of the business has been trailing behind other segments of Thomson Reuters’ legal portfolio, which includes WestLaw and Practical Law.
The company has noted this trend in recent quarters, leading to the strategic decision to divest FindLaw. The deal, the financial details of which have not been disclosed by either Thomson Reuters or Internet Brands, is expected to close in the fourth quarter, subject to regulatory approvals.
The acquisition will add to Internet Brands’ diverse portfolio of online businesses, which includes WebMD, Medscape, and CarsDirect. The sale of FindLaw is a significant development in the legal information industry. FindLaw has been a trusted source of legal information for many years, providing valuable resources to legal professionals and the general public alike.
Future Implications
The acquisition by Internet Brands could potentially lead to a shift in the way legal information is disseminated and consumed online. The use of digital platforms for accessing legal information has been on the rise, with companies like FindLaw playing a crucial role in this transformation.
The acquisition by Internet Brands, a company with a strong presence in the online sector, could further accelerate this trend. The sale of FindLaw is reminiscent of similar deals in the past where traditional information providers have been acquired by digital-focused companies.
For instance, the acquisition of WestLaw by Thomson Reuters in 1996 marked a significant shift in the legal research industry, paving the way for the digitization of legal information. The current deal could potentially have a similar impact, marking a new era in the online legal information sector.
The acquisition also highlights the growing importance of digital platforms in the legal sector. As more and more legal professionals and consumers turn to online resources for legal information, companies like Internet Brands are well-positioned to capitalize on this trend.
The deal also raises questions about the future strategy of Thomson Reuters in the legal information sector. With the sale of FindLaw, the company appears to be focusing more on its other legal businesses, WestLaw and Practical Law. It remains to be seen how this strategy will play out in the coming years.
Sep 15 (IANS) Software major Adobe on Thursday announced it would acquire design software company Figma for about $20 billion in a cash and stock deal.
Founded by Dylan Field and Evan Wallace in 2012, Figma pioneered product design on the web.
The combination of Adobe and Figma will usher in a new era of collaborative creativity.
“Adobe’s greatness has been rooted in our ability to create new categories and deliver cutting-edge technologies through organic innovation and inorganic acquisitions,” said Shantanu Narayen, Chairman and CEO, Adobe.
Adobe
“The combination of Adobe and Figma is transformational and will accelerate our vision for collaborative creativity,” he added.
Figma has a total addressable market of $16.5 billion by 2025.
The company is expected to add approximately $200 million in net new ARR this year, surpassing $400 million in total ARR exiting 2022.
“With Adobe’s amazing innovation and expertise, especially in 3D, video, vector, imaging and fonts, we can further reimagine end-to-end product design in the browser, while building new tools and spaces to empower customers to design products faster and more easily,” said Dylan Field, co-founder and CEO, Figma.
