RIL's media biz consolidation a blockbuster move for shareholders

In addition to synergy gains, strategic partner could add to digital offerings

The merger of the media and distribution arms of Reliance Industries under the Network18 umbrella is a positive for shareholders of all four entities.

Analysts believe that despite a common ownership, it was difficult to value the separately listed entities. With consolidation of cable distributors DEN Networks and Hathway Cable and Datacom, broadcaster TV18 under the holding company Network18 Media and Investments, the ‘sum of parts’ valuation is expected to be higher. The merged entity will rank among the top three Indian media companies. 

The head of research at a domestic brokerage believes the move will improve decision-making and avoid overlaps across business