Reliance Industries May Acquire Den Networks Soon – ZMR Blog
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Reliance Industries May Acquire Den Networks Soon

Reliance Industries May Acquire Den Networks Soon

Mukesh Ambani’s Reliance Industries (RIL) is negotiating the final stage to buy Sameer Manchanda’s multi-system operator (MSO) Den Networks. Two high-level sources aware of this matter shared this information.

One of them said, “It can be a positive deal and the cost of deal will be around Rs 2,000–2,200 Crore.” Cable company is called MSO in the industry language, which signs content and carriage deals with channels and provides services to local cable operators. In response to queries, Reliance spokesperson declined to comment on this news and termed it as a rumor.

Reliance Industries launched 4G telecom services in the second half of last year under the Reliance Jio brand. And the company is now going to launch broadband and cable TV services. The company has also planned to offer Quad Play services such as Broadband Internet, Wireline telephony, Cable TV and Wireless.

With this acquisition, Reliance will reach 1.3 Crore mark in terms of subscribers, of which 1.05 Crore are digital subscribers. The media analyst of one of the brokerage firm said, “Reliance wants to enter into the cable segment. It has an MSO license and the company has created a large fiber cable network across the country. It can enter this segment by making an acquisition and this won’t take much time.”

Den Networks

In 2014, Reliance subsidiary Reliance Jio Media had received an MSO license from the Ministry of Information and Broadcasting for the country. In the same year, Reliance hired Jayaraman, an expert of the cable Industry. Raman has already headed the MSOHathway Cable and Datacom, the country’s largest cable company. Reliance also hired SN Sharma, the then CEO of Den Networks at the same time. Both of them were chosen by Reliance to set up their cable industry business. Jayaraman is still with Reliance Jio, but Sharma last year joined the Den Networks as CEO.

Interestingly, Den has convened an annual general meeting. However, the source said that the deal was not going to happen soon. He said, “The conversation between Reliance and Den is in the final stage, but the deal will not be announced in the AGM.” This is not the first news of Den’s sale. Last year, similar news was floated that Subhash Chandra’s MSW’s Esloil Group is in talks for potential merger. However, this conversation was unsuccessful.

However, if this deal is accomplished, the share market may witness an appreciable hustle bustle specifically in media sector.

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