Network18, others sell majority stake in HomeShop18 to SkyBlue Buildwell
MUMBAI: Network18 along with other investors have sold a majority stake in its TV home shopping channel business HomeShop18 to SkyBlue Buildwell. The financial details of the deal have not been disclosed. The new investor holds 82.6% stake in HomeShop18.
The existing shareholders Network18 Media & Investments, SAIF Partners, GS Home Shopping South Korea, OCP Asia, CJO Shopping Co. Ltd, and Providence Equity Partners have not participated in this round.
After the investment, Skyblue holds 82.64% of HomeShop18, becoming the holding company and promoter of HomeShop18.”
With this investment, HomeShop18 has ceased to be a subsidiary of NW18 HSN Holdings Plc and an associate of Network18 Media & Investments. The company is in the process of changing its corporate as well as the brand name.
HomeShop18 is India’s first comprehensive digital commerce player, selling credible brands to customers nationally through not just TV but also internet and mobile. As a pioneer, HomeShop18 changed the way Indians shop by launching India’s first 24 hour Home Shopping TV channel in 2008.
In September, Shop CJ had merged with Homeshop18 to create India’s largest TV home shopping network. The combination was effected by way of a share-swap wherein the shareholders of Shop CJ will be issued 25% equity in HomeShop18, making Shop CJ a subsidiary of HomeShop18.
Post the transaction, HomeShop18 ceased to be a subsidiary of Network18 Media & Investments; however, Network18 continued to be the largest shareholder in the combined entity.
In its Q4 and FY19 investor update, Network18 had stated that HomeShop18 continues to face strong headwinds with increase in competition from e-commerce, rising channel distribution costs, and vendor supply issues. The business continues to be closely monitored for sustenance. Meanwhile, the company has focused on the process of right-sizing of costs, integration with ShopCJ, and improving contribution margin.