Noida based television home
shopping network and online marketplace, HomeShop18, the part of Network18
Media & Investments, has acquired a 74% stake in Shop CJ Network. Shop CJ
Network is an equal joint venture between private equity investor Providence
Equity Partners and Korean firm CJ O Shopping. The deal is said to be anywhere
between $27.45 Mn to $30.5 Mn.
With this deal, Providence
Equity Partners is also looking for an exit from Shop CJ Network and will sell
its stake completely. Shop CJ network, earlier known as Star CJ, was launched
in 2009, as a 50:50 joint venture between Star India and CJO Shopping.
Later in 2014, Star India sold its stake to Providence Equity Partners for $63
Mn.
Media group Network18 had launched
HomeShop18 television channel in April 2008 and its online marketplace HomeShop18.com
in January 2011. It is backed by PE firm SAIF Partners with
funds managed by OCP Asia. It also counts South Korea’s GS Home Shopping as a
strategic investor.
Its revenues are derived from the
commission it gets from the sale of products by its vendors through its
platforms. It still generates the bulk of its revenues from television shopping
business. Now, Reliance Industries Limited (RIL) of Mukesh Ambani owns
Homeshop18 through the acquisition of Network18 which happened in 2014. During
that same year, HomeShop18 also scrapped
its proposed $75 Mn public issue, after seven months of filing on the
NYSE.
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