Inside the Network18 takeover(livemint.com)
livemint.com
Inside the Network18 takeover
http://www.livemint.com/Companies/rqT2Oi8fwv4XVjJcHzlcVN/Inside-the-Network18-takeover.html
8 comments
That is an interesting story, thank you. It reads like a television drama and could probably be turned into an engaging suspense movie. I sometimes wonder whether there should be more forced independence for media companies, but then I remember things like News Corp, which isn't exactly a shining star of journalistic integrity, and GE owning NBC (prior to the sale to Comcast), which afaik didn't ever run into any conflict of interest problems between the parent company and what hit the airwaves.
"And when the 12th largest company in the world controls the most awesome goddamn propaganda force in the whole godless world, who knows what shit will be peddled for truth on this network?"
'Howard Beale' from Network(1976).
'Howard Beale' from Network(1976).
Debt is the key in the story. You cannot spend the money if you don't have it.
For those of us who are not familiar with the Indian political and business background of this story and the characters, can someone summarize?
Some parts translate pretty clearly to a naive reader - high-growth startup accrues too much debt in acquisitions and expansion, some of the new ventures lose money, takes on a high-profile investor and restructures to stabilize, investor takes over the company and kicks out the founder. Others are less so - references to Reliance's place in the political sphere, something about gas prices(?) which I presume Reliance has something to do with, a new political movement that is apparently supported by some of the people in the story but not others.
Some parts translate pretty clearly to a naive reader - high-growth startup accrues too much debt in acquisitions and expansion, some of the new ventures lose money, takes on a high-profile investor and restructures to stabilize, investor takes over the company and kicks out the founder. Others are less so - references to Reliance's place in the political sphere, something about gas prices(?) which I presume Reliance has something to do with, a new political movement that is apparently supported by some of the people in the story but not others.
A lot happened in India around the recently concluded elections. This resulted in the loss of the ruling party, Congress, It lost so bad it could not form an opposition in the house. The winner, BJP, won with unprecedented margin (at least in the last few decades)
One of the major reason for the downfall was growing discontent, anger among the people against corruption, crime and inflation etc.
A new political party which calls itself, Aam Admi(Common Man)Party, started by Arvind Kejriwal, emerged by raising its voice against corruption. Multi-billion dollar scams were exposed frequently.
The party projected itself as anti-corruption and targeted Congress, and several businesses. It raised fund through people and media propagated their message. It continued to expose and openly question government expenses. They targeted Reliance, the largest business conglomerate, several times.
One of the major reason for the downfall was growing discontent, anger among the people against corruption, crime and inflation etc.
A new political party which calls itself, Aam Admi(Common Man)Party, started by Arvind Kejriwal, emerged by raising its voice against corruption. Multi-billion dollar scams were exposed frequently.
The party projected itself as anti-corruption and targeted Congress, and several businesses. It raised fund through people and media propagated their message. It continued to expose and openly question government expenses. They targeted Reliance, the largest business conglomerate, several times.
In addition to the previous comment, this new party (AAP) accused the two other main political parties of being in collusion with Reliance to fix the price of natural gas rather high. This is the crony capitalism angle and this, supposedly resulted in the animosity between AAP and Reliance.
However, these are all accusations made during a vehemently charged election atmosphere. Take them with a pinch of salt.
However, these are all accusations made during a vehemently charged election atmosphere. Take them with a pinch of salt.
One would tend to question certain events when lots of people that mint has spoken to, do not want to be named.
We do not have a whistle-blower's protection act to being with, hence a large room for exploitation
When the boss in question is Ambani, one would understand why nobody wants to be identified.
First it mentions that Reliance did not want board members to quit. But then everyone quits!
I don't think this is the right forum to post it (though I agree that the article raises some very pertinent questions)
why is it not for this forum ?
Because it ultimately is a story of a corporate takeover. It is not as if they didn't had the control earlier. Reliance was a significant stakeholder of the company earlier too.
So again. Why is it not a story here? Either you did not read the article or you did not understand the inner currents, politics and business strategies involved. Read again.
Seriously? Posting this story in isolation presents an image that a downfall of media has begun, when in reality it is just a change of face.
I have read the story, and I very well understand the movement under the surface.
A comprehensive article about the continuous degradation on electronic media would have been suitable as it would have provided a complete image, instead of this, where it gives a peephole view to a very large problem.
I have read the story, and I very well understand the movement under the surface.
A comprehensive article about the continuous degradation on electronic media would have been suitable as it would have provided a complete image, instead of this, where it gives a peephole view to a very large problem.
This is where selective censorship and commoditization of mass opinions begins. These are the most important stories.
A famous author once said that to trade underlying agendas and flow of control, follow the money.
A famous author once said that to trade underlying agendas and flow of control, follow the money.
Thats the point, you think it will start now, but the truth is that selective censorship is live media is a norm, and the Breaking News culture has a lot to contribute to it too. Even if not through direct control (flow of money and ownership), media can be easily arm twisted at times, provided the one twisting the arm knows the pressure points.
There have been in past a lots of reports about malpractices prevalent in media. Selective/biased reporting against political parties, journalists making deals with sting operations as leverages, paid news, etc.
And thus, to me, this is merely transfer of control. And thats exactly why I think this report is not apt for this forum, as although it presents quite a legitimate picture about take over of one network by a corporate giant, it is just a small pixel in an overall huge picture about the degradation of live & electronic media.
There have been in past a lots of reports about malpractices prevalent in media. Selective/biased reporting against political parties, journalists making deals with sting operations as leverages, paid news, etc.
And thus, to me, this is merely transfer of control. And thats exactly why I think this report is not apt for this forum, as although it presents quite a legitimate picture about take over of one network by a corporate giant, it is just a small pixel in an overall huge picture about the degradation of live & electronic media.
"Never let your inferiors do you a favor. It'll be extremely costly." --Mencken
Rajeep Sardesai standing by the spirit of journalism? That's a laugh.