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HomeShop18, Shop CJ in merger talks
MUMBAI: The TV home shopping business is proving to be unsustainable with two big players in the market. So, the two biggies have started talking about a merger.
Mukesh Ambani-owned HomeShop18 and Shop CJ Network, a 50:50 joint venture between Korean firm CJ O Shopping and private equity firm Providence Equity Partners, are in talks to merge operations.
Providence, which had bought out Star India’s 50% stake, is looking to exit. HomeShop18, part of Network18 Media & Investments, is expected to control the merged entity with CJ O Shopping bringing down its stake.
“Due diligence is on and the deal size is expected to be anywhere between $150-200 million,” the Economic Times quoted sources as saying.
The talks are at an advanced level and if all goes well, it could be announced in next 3-4 months, the business daily reported.
Earlier, celebrity couple Shilpa Shetty and Raj Kundra-owned Best Deal TV suspended operations due to the cash crunch after demonetisation. DEN Networks, which ran DEN Snapdeal TV Shop in partnership with Snapdeal, also exited earlier this month.
Homeshop18 was launched in April 2008. It reported a loss of Rs 84.2 crore in FY16 on a turnover of Rs 390.4 crore.