Contemplating on speculations and denying for quite some time the Industrial empire’s head Mukech Ambani has confirmed on Tuesday that Reliance Industries limited (RIL) has made a big bang in to the entertainment sector by making a huge investment in Network18 and TV18.

RIL has struck a multi-tiered deal that can eventually give it a major equity stake in the Network18 Group, which operates a host of television channels and new media businesses. Another subsidiary of RIL, Infotel Broad Band Services has entered into a pact with TV18 and Network18 for preferential access to all their content for distribution through the 4G broadband network being set up by Infotel. So it’s a win-win situation to all involved.

The investment pattern would be Network 18, headed by Raghav Bahl is to buy into some regional channels of Eenadu TV, to improve its strategic presence. This acquisition would cost Netwok Rs. 2100 Cr, which is to be funded by RIL. Incidentally these channels have been owned by RIL till now.

According to a statement released at Mumbai on Tuesday, Network18 Media & Investment and TV18 Broadcast will offer the rights shares that will fund TV18 Broadcast’s purchase of all of ETV Uttar Pradesh, ETV Madhya Pradesh, ETV Rajasthan, ETV Bihar and ETV Urdu. It will buy 50 per cent of ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarati and ETV Oriya and 24.5 per cent in ETV Telugu and ETV Telugu News.

Bahl and other founders will invest Rs 1,700 Cr in the rights offers that will be funded by Reliance’s trust, Independent Media Trust. Reliance had invested Rs 2,600 Cr in Eenadu’s ETV channels.