Top-level exodus from TV18 after RIL takeover

TV18 founder Raghav Bahl resigned from the Network18 group today in the wake of its takeover by Reliance Industries Ltd on Wednesday in a Rs4,000 crore deal.

Independent Media Trust (IMT), an arm of RIL, has through the deal acquired control of Network18 Media & Investments Ltd (NW18), including its subsidiary TV18 Broadcast Ltd (TV18), the companies officially announced.

Other top editors and popular anchors of CNN-IBN, Rajdeep Sardesai and Sagarika Ghose, who hold minority shares in the company, are likely to put in their papers soon amid an exodus from the company, where many senior editors across its channels, including Hindi, English, and business channels, are expected to quit, and some have reportedly already lined up new jobs with other organisations.

Network18's chief executive officer B Sai Kumar, chief operating officer Ajay Chacko, and chief financial officer R D S Bawa have all quit over the last two days.

While Ghose and others have reportedly accepted offers from rival news organisations, Sardesai is considering taking a break for a year to write a book.

Both the popular anchors have reportedly had issues with the management over their online postings criticising Narendra Modi well before he became the Prime Minister of India.

Reliance Industries Ltd today said in a press release that the company was putting in Rs4,000 crore (around $679 million) in Independent Media Trust for "acquisition of control in Network 18 Media & Investments Ltd ... including its subsidiary TV18 Broadcast Limited.".

"The acquisition will differentiate Reliance's 4G business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties," the release said.

"This suite includes In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com, Bookmyshow.com; the broadcast channels include Colors, CNN IBN, CNBC TV18, IBN7, CNBC Awaaz."

The announcement has left Network 18 employees in a state of uncertainty.

Founded by Raghav Bahl, Network18 is one of India's largest media companies, which owns television channels CNBC TV18, CNN-IBN, CNBC Awaaz; websites Moneycontrol.com, firstpost.com; print magazines Forbes India, Overdrive; general entertainment channel Colors and Homeshop18, a television and Internet retail venture, among various other media and non-media businesses.

Under Securities & Exchange Board of India regulations, ''IMT would be making Open Offers to public shareholders for acquisition of equity shares in NW18, TV 18 and Infomedia Press Limited'', an RIL statement to the bourses said.

The announcement was preceded by the exits of key executives and more are likely to follow. Several employees said they see the move as ''hostile''.

Members of the board of Network18 and subsidiary TV18 have also quit, according to reports. These include senior editors Shireen Bhan, executive editor of CNBC TV18, and Senthil Chengalvarayan, managing editor of CNBC TV18.

According to one report, Alok Agrawal, the former CEO of Zee News, is likely to head the new team at Network18. Agarwal joined RIL earlier this month. Meanwhile, Avinash Kaul, former CEO at Times Television Network, has been appointed as the new head for IBN Network and will manage three news channels - CNN-IBN, IBN7 and IBN Lokmat.

For RIL, the takeover is a strategic move for its 4G telecom play in the country. In its statement, the company said, ''The acquisition will differentiate Reliance's 4G business by providing a unique amalgamation at the intersection of telecom, web and digital commerce via a suite of premier digital properties.''