India’s leading industrial house Reliance Industries said it would sell its stake in ETV channels to the TV18 Broadcast Ltd and the media observers see this move as part of its attempts to enter the 4G media market.

Reliance has 100 per cent stake in four ETV regional news channels ETV UP, ETV MP, ETV Bihar and ETV Urdu, 100 per cent stake in five ETV entertainment channels ETV Marathi, ETV Kannada, ETV Bangla, ETV Gujarathi and ETV Oriya and 49 per cent stake in two ETV Telugu channels ETV and ETV news (ETV 2), according to a statement released by the Reliance Industries in Mumbai Tuesday evening.

This means Eenadu Chairman Ramoji Rao owns 51 per cent stake in the two Eenadu Telugu channels and the deal will in way affect his stake in the two channels.

Reliance Industries said it had clinched the deal with the TV18 Broadcast Ltd for Rs.2100 Cr for transferring its entire stake in ETV non-Telugu news channels, 50 per cent stake in ETV entertainment channels and 24.5 per cent in the two ETV Telugu channels.

After transferring the stake, TV18 Broadcast Ltd that runs CNBC-TV 18, CNN-IBN and some websites, will have 100 per cent stake in the four ETV regional news channels, 50 per cent stake in the five ETV entertainment channels and 24.5 per cent in the two Telugu ETV channels. For acquiring the Reliance stake in the ETV channels owned by the Reliance Industries, TV18 Broadcast Ltd will go for a rights issue and it will be funded by the Independent Media Trust owned by the Reliance.

In return, TV18 Broadcast will provide all the necessary content required for the Reliance Industries which is launching its 4G media venture soon. (JUBS)