Network 18, the Raghav Bahl-owned media conglomerate, has decided to merge the logistics, back-end and broadcast operations of two of its business channels, CNBC TV 18 and CNBC Awaaz, to derive cost savings of up to Rs 65 crore.
In a filing to the stock exchanges, the company said, the move will result in optimisation of around 20% in annual operating costs. The shares of Network 18 Media & Investments closed at Rs 80.70 today, up by over 5%.
The move follows the rights offer of TV18, which will lead to debt reduction of Rs 300 crore. “Both moves will help the company return to better operating margins and profitability,” it said.
Both the channels will continue operations with separate identities. The synergies from merging of operations will come into effect from the next quarter.