Breaking HomeShop18, Shop CJ in merger talks

[Shantanu]

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.

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.

HomeShop18, Shop CJ in merger talks | TelevisionPost.com

 

[Dinesh jain]

India’s second-largest TV home shopping network Shop CJ will merge with its bigger rival Homeshop18 to create India’s largest TV home shopping network.

The combination will be effected by way of a share swap wherein the shareholders of Shop CJ will be issued 25% equity stake in HomeShop18, making Shop CJ a subsidiary of HomeShop18.

Following the transaction, HomeShop18 will cease to be a subsidiary of Network18 Media & Investments. However, Network18 will continue to be the largest shareholder in the combined entity.


“The board of directors of TV18 Home Shopping Network Limited (‘Homeshop18’) and Shop CJ Network Private Limited (‘Shop CJ’) approved entering into a definitive agreement to combine the businesses of both entities,” Network18 said in a statement.

Shop CJ is a 50:50 JV between South Kor
The transaction is aimed at uniting two of India’s top home shopping players, to create the largest home shopping platform in the country, the company added.

The merger will offer scale to Homeshop18, which will allow it to improve its standing in the TV home shopping landscape and compete better with the challenge from e-commerce players.

TV18 Home Shopping Network operates a single channel named HomeShop18 while Shop CJ has three channels, namely Shop CJ, Shop CJ Tamil and Shop CJ Telugu.
In fiscal 2017, TV18 Home Shopping Network had posted a net loss of Rs 153.1 crore on a revenue of Rs 318 crore while expenses stood at Rs 470.7 crore. The financials of Shop CJ are not available in public domain since it is a private company.
Teleshopping market in India is projected to exhibit a CAGR of 17.20% during 2016–21, according to a recent research report by Research & Markets.

Teleshopping market in India grew significantly over the past few years owing to increasing disposable income, ease of shopping, rising television penetration in the country, it stated.

In July 2016, Homeshop18 had raised an undisclosed amount. Earlier, in April 2013, the company had raised $30 million from hedge fund OCP Asia and Network18 in equal proportion.
Shop CJ to merge with HomeShop18 to create a TV shopping giant | TelevisionPost.com

 

[ABCDEFGH]

So now their ads will be more deadly