Reliance Group's acquisition of stakes in India's two major cable operators – DEN Networks and Hathway – not only will strengthen RJio's foothold in the home broadband segment, but will position it as a leading pay-TV provider.
- Reliance Group has agreed to pay INR22.9bn ($323m) to acquire a 66% stake in DEN Networks and INR29.4bn for a 51.34% stake in Hathway, through subsidiary businesses Jio Content Distribution Holdings, Jio Internet Distribution Holdings, and Jio Cable and Broadband Holdings, with each acquiring varying stakes in the two target firms.
- Unlike in the mobile market, rolling out last-mile connectivity at this scale required the group not only to commit much higher capital investments but to deal with a segment plagued by less favorable regulations.
- A more serious assault is expected in the broadcasting and media segment, as Reliance will position its Giga TV service primarily as a value add to its core broadband business, accelerating price erosion through escalating competition in the pay-TV segment.
Features and Benefits
- Understand the recent announcement on Reliance's stake acquisitions in DEN Networks and Hathway.
- Understand the synergies the deal will bring.
- How will Reliance leverage DEN's and Hathway's established infrastructure and household networks?
- How will the acquisitions affect the industry?
Key questions answered
- What is the rationale behind Reliance's recent stake acquisitions in Hathway and DEN Networks?
- How will the acquisitions help and strengthen Reliance Jio?
- What industry changes do we expect if the deals are finalized?
- How will the deal affect the pay-TV market?
Table of contents
Reliance Group links up with DEN and Hathway as it prepares for next leap
RJio may emulate telcos occupying leading positions in pay TV
Consolidating household spending on communication and entertainment to further dent incumbents