Network18 to Sell Its Shareholding in Newswire18; Will Receive INR 90 CroresTeam YS
Network18 was the majority shareholder in NewsWire18, having incubated the company with the founding CEO, Pankaj Aher and his team. The total transaction will result in proceeds of INR 90 Crores for Network18 in consideration for divesting its entire stake in the business. The transaction is expected to add approximately INR. 70 Crores to Network18’s consolidated pre-tax profit for the current quarter. NewsWire18 will also be rechristened over the next 90 days as a result of the transaction.
Announcing the transaction, Raghav Bahl, Managing Director, Network18 said that, “The divestiture of Newswire18, India’s leading financial data and news terminal business is a reflection of our commitment to profitably monetize non-core assets for the benefit of our shareholders and to also facilitate the growth of these businesses to the next level. We are proud to have partnered with NewsWire18 in its journey thus far and are confident that Pankaj and his team will continue to excel and build one of the finest financial data businesses in India.”
The divestment of NewsWire18 forms a part of a series of asset monetization transactions by Network18. Earlier during the year, Network18 had profitably sold its stake in one of the Capital18 investee companies – NetworkPlay and then partially diluted its stake in India’s premier Digital Commerce asset – Bookmyshow.com.