Mukesh Ambani boosts Internet TV interests

The billionaire tycoon's conglomerate said that it was selling an undisclosed part of its stakes in a regional Indian television network to the media and entertainment group Network18.

Network18 would then give Reliance preferential access to its content for distribution on Ambani's fourth-generation broadband platform run by subsidiary Infotel Broadband.

Shares in the Network18 group on the Bombay Stock Exchange soared after the announcement, closing on a day's high of 46.4 rupees, an increase of 19.9%. Reliance closed 2.37% up at 723.7 rupees.

Reliance, which is India's largest private sector firm, has been looking to diversify its portfolio in recent months in areas from communications to hotels.

Ambani's younger brother, Anil, who heads the Reliance Group, has interests in media and film through his Reliance Entertainment unit.

The brothers were involved in a public battle for the spoils of their father's vast business empire after his death in 2002, though they had agreed not to compete in related interests.

They tore up a non-competition pact in 2010, paving the way for greater co-operation and new ventures.

Reliance Industries' acquisition of Infotel Broadband last year signalled its re-entry into the telecom and broadband sector.

Infotel was the only company to win an India-wide licence for 4G broadband wireless services.

Reliance had previously denied media speculation about a tie-up with Network18, which runs television stations like business channel CNBC and the music-focused MTV, as well as e-commerce sites.

Source: AFP via I-Net Bridge