wordpress blog stats
Connect with us

Hi, what are you looking for?

Web18 To Be Merged Into Network18; To Settle With Nokia Growth Partners

As a part of its restructuring to consolidate its business into TV and other ’emerging’ businesses, the Network18 group had last month, sought shareholder approval for merging its digital business owned by Web18, including in.com, cricketnext.com, ibnlive.com, biztech2.com, indiwo.com, josh18.com, tech2.com, buzz18.com, into Network18 Media & Investments Limited. The yellow pages business of Infomedia18 (which includes Burrp and AskMe.in) the demerged business of Television Eighteen India Limited, Television Eighteen Commoditiescontrol.com Limited, Care Websites Private Limited, RVT Investments Private Limited and Network18 India Holdings Private Limited will also be moved to Network18.

However, e-eighteen.com Ltd, which owns PowerYourTrade.com and Web18’s flagship Moneycontrol.com is, at present, not being merged. A Network18 spokesperson told MediaNama that “We don’t own the complete shareholding in e-eighteen, and there’s a court case going on. Until that gets disposed off, we cant merge it.” However, e-eighteen Ltd will be a subsidiary of Network18.

What This Means For Web18 Stakeholders

– No IPO in the near future: With all the assets of Web18 being transferred to Network18, Web18 will cease to be a separate entity. Which means that the NASDAQ registration for Web18 comes to naught. The Network18 spokesperson, however, said that there will be no listing at this stage, but nothing stops the company from hiving off the business in the future, and looking to list it again.

– Nokia Growth Partners had apparently invested $10 million in Web18 in 2009. The Network18 spokesperson told MediaNama that they will settle with NGP, but declined to comment on details. Tracer Capital, from whom Web18 had previously raised $10 million, is no longer a shareholder; their stake had been bought out by Network18 long ago, according to the spokesperson.

– ESOPS: Web18 had given employees ESOPS around a year ago. “They’ll be settled for cash over time, or exchanged for Network18 stock” the Network18 spokesperson told MediaNama.

– TV18 Shareholders: Shareholders of TV18, which owned most of Web18, will get stock in Network18 following the restructuring.

Advertisement. Scroll to continue reading.

What this restructuring also means is that Network18 will probably no longer provide a detailed quarterly Profit and Loss account for Web18, instead, show limited segment information for the digital business. That’s one earnings report less for us to cover.

The merger into Network18 is a sad end for a company that had IPO aspirations, and tried to do too much too quickly, in a market where most Internet portal businesses struggle to scale, and most scaled Internet businesses are struggling to sustain; the financials of many Internet companies in India don’t paint a pretty picture.

(Update with a corrected regarding Web18 ESOPs, which had been misquoted. The error is regretted)

Network18 Consolidates Digital, Publishing Under NW18, TV Biz Under TV18
Web18 Q2-11 Op Loss Down To Rs. 1 Crore; IBNLive Stats; BookMyShow Revenue
Updated: In.com And Traffic Tactics: Why Comparing In.com With Rediff Is Incorrect
Web18 Takes Mobile Internet Properties In-House
Surya Mantha Leaves Network18 To Join VC Firm Omidyar Network
Web18 Sells Back 50% Stake In JobStreet India; $0.126M Cash
Buzz18 Rechristened IBN Movies; Looking Back At The Portal Launching Frenzy
Web18 To Raise $10 M From Nokia Growth Partners; Growth Capital? Profitability?

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



By Rahul Rai and Shruti Aji Murali A little less than a year since their release, the Consumer Protection (E-commerce) Rules, 2020 is being amended....


By Anand Venkatanarayanan                         There has been enough commentary about the Indian IT...


By Rahul Rai and Shruti Aji Murali The Indian antitrust regulator, the Competition Commission of India (CCI) has a little more than a decade...


By Stella Joseph, Prakhil Mishra, and Surabhi Prabhudesai The recent difference of opinions between the Government and Twitter brings to fore the increasing scrutiny...


This article is being posted here courtesy of The Wire, where it was originally published on June 17.  By Saksham Singh The St Petersburg paradox,...

You May Also Like


In line with growing calls for antitrust regulation in the US, Republican Senator Josh Hawley has introduced legislation calling for the ban of all...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ