Sony in talks to buy stake in Mukesh Ambani's Network18 TV media group

Sony Corp. is in talks to acquire a stake in the Indian television network controlled by billionaire Mukesh Ambani, as the Japanese giant seeks to tap booming demand for content in the South Asian nation, according to people familiar with the matter.

The Tokyo-based company is currently conducting due diligence on Ambani’s Network18 Media & Investments Ltd. before any possible offer, the people said, asking not to be named as the information is not public. Sony is considering several potential deal structures, including a bid for the company or a merger of its own Indian business with Network18’s entertainment channels, one of the people said.

Talks are at a preliminary stage and may not result in a transaction, the people said. Shares of Network18 surged as much as 15% in Mumbai on Thursday, while unit TV18 Broadcast Ltd. jumped 9.7%.

While a successful deal may help Sony bolster its local offerings and take on upstart rivals such as Netflix Inc., it will give Ambani access to international content. The Indian tycoon’s wireless carrier, Reliance Jio Infocomm Ltd., has spent almost $50 billion in the past few years on its network to disrupt India’s telecommunications industry and has been luring users by offering local and overseas programming. Read More