Rajdeep and Sagarika to resign as Reliance takes over Network 18

by Guest Thu May 29, 2014 11:34 am

http://scroll.in/article/665841/Rajdeep-and-Sagarika-to-resign-as-Reliance-takes-over-Network-18

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Last month Karan Thapar had also resigned from CNN IBN (a Network 18 channel). On the face of it it seems a pretty stupid move on the part of Reliance to encourage this exodus from its newly acquired media group of its finest journalists.

by Guest Thu May 29, 2014 11:35 am

there are also some legitimate concerns about big business (like the Ambani group) taking over (large sections of the) Indian media.

by Vakavaka Pakapaka Thu May 29, 2014 12:20 pm

Good riddance!

by Guest Thu May 29, 2014 4:54 pm

At the time, the person familiar with happenings during the 27 May board meeting said, it was envisaged that the “news properties” would be run by Bahl and his team with no interference from RIL, although the latter had the contractual right to take control of these.
RIL, too, said as much at the time in a press release. “Raghav Bahl and the current promoter entities of Network18 and TV18 will continue to retain control over Network18 and TV18,” the company said.
Network18’s financials have improved considerably since RIL invested indirectly in the company. In the year till March 2012, before the investment, the company reported operating losses worth Rs.270 crore on revenue of Rs.1,952 crore. In the year till March 2014, it turned profitable at the Ebitda (earnings before interest, tax, depreciation and amortization) level, with a profit of Rs.87.2 crore on consolidated revenues of Rs.2,692 crore.
Besides, in March 2012, Network18 had borrowings worth nearly Rs.2,400 crore. Operating cash flow was a negative Rs.249 crore and free cash flow stood at a negative Rs.335 crore, clearly showing the company’s desperate need for a cash infusion. Its net debt has now dropped to Rs.786 crore, thanks to which interest cost has come down from Rs.272 crore in FY12 to Rs.122.5 crore in FY14.
The person familiar with the happenings in the board meeting said Bahl and his team didn’t ever think RIL would oust them and seize control. Everyone wishes they could turn the clock back, he added.

http://www.livemint.com/Companies/Vpo4RrEprzzsFI7xGJw3OP/RIL-to-acquire-control-of-Network-18-spend-Rs4000-crore.html

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why would Reliance prefer to backstab the CNN-IBN team (Rajdeep et al)? Does this not affect their reputation adversely? Who will trust their word now?

by Vakavaka Pakapaka Thu May 29, 2014 5:03 pm

Private News houses are like this. Their editorials are never free of bias. True, across the world.

Varadarajans, Kedkars and Bhushans will just have a lean 5 year period.

by confuzzled dude Thu May 29, 2014 5:08 pm

Oh the great tradition of state run media is back. First sign of development promised I guess

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Rajdeep and Sagarika to resign as Reliance takes over Network 18

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Re: Rajdeep and Sagarika to resign as Reliance takes over Network 18

Re: Rajdeep and Sagarika to resign as Reliance takes over Network 18

Re: Rajdeep and Sagarika to resign as Reliance takes over Network 18

Re: Rajdeep and Sagarika to resign as Reliance takes over Network 18

Re: Rajdeep and Sagarika to resign as Reliance takes over Network 18