<div><strong>By Gurbir Singh</strong></div><div> </div><div>The takeover of Network18 by Mukesh Ambani’s Reliance Industries (RIL) has always been an enigma. Why did Reliance want to take over a media company after having burnt its fingers in 1991 with The Sunday Observer and The Business & Political Observer? Did a Rs 3.84 lakh-crore behemoth need to add a Rs 3,000-crore company to its repertoire? Or, was there some other agenda?</div><div> </div><div>Recent events at Network18 have reinforced the question: Can Reliance, with its multi-layered corporate compulsions, run a credible news network?</div><div> </div><div>Over a couple of days at the end of September, the leadership at Network18 underwent quick and dramatic surgery. A.P. Parigi, group CEO, Network18, who had been appointed barely nine months ago, was marched off as ‘advisor’ to the chairman Adil Zainulbhai. Rahul Joshi, editorial director at The Economic Times, was brought in as ‘CEO-News and Group Editor-in-Chief’ to ‘drive’ the company with ‘ownership mindset’. Joshi now straddles both corporate and editorial functions, a difficult and contradictory role. Zainulbhai’s circular also dispensed with Senthil Chengalvarayan, the editor-in-chief, Business Newsroom, and the face of CNBC India for over two decades.</div><div> </div><div>Reliance’s Network18 journey since 2012 is revealing. Reliance initially provided a rescue package to the then Raghav Bahl-promoted Network18 —some Rs 2,200 crore — against optionally convertible debentures (OCDs); by then Reliance had also acquired the Eenadu Group’s network of regional news and entertainment channels, and it was merged with Network18 making it a powerful 25-channel network.</div><div> </div><div>Initially, RIL’s statements took pains to portray an arms-length policy. The company said in its 3 January 2012 press release that RIL was setting up an ‘Independent Media Trust’ to fund the company, which would have “eminent individuals as trustees, thus preserving the management, operational and editorial independence....” The press release said the main object of the media foray was to acquire content for Reliance’s 4G venture ‘Infotel Broadband Services’. </div><div> </div><div>By June 2014, when RIL decided to convert its OCDs and wrest management control from previous chairman Bahl, the arms-length policy was all but forgotten. People quit in droves. In his exit letter to the CNN-IBN staff, editor-in-chief Rajdeep Sardesai said: “Editorial independence and integrity have been articles of faith in 26 years in journalism and maybe I am too old now to change!” Deputy editor Sagarika Ghose and IBN-Lokmat editor Nikhil Wagle also opted out. </div><div> </div><div>There was no ambiguity that RIL wanted both corporate and editorial control. Sagarika Ghose, who anchored the primetime ‘Face the Nation’ was told in February 2014 not to post disparaging tweets against prime ministerial candidate Narendra Modi. Later, an edict was put out not to give media coverage to Arvind Kejriwal’s Aam Aadmi Party in the Delhi state elections. Those who defied the whip lost their jobs. </div><div> </div><div>News media is a strange product. It needs delicate touch and respect for good journalism. History has shown that those who run huge corporate empires, and used to command and control systems, are at a loss when it comes to news media. Its only raw material is credibility. If that is compromised, however powerful the corporate backing, it will not sell. See which way the wind is blowing for Network18: CNN-IBN has steadily slipped in audience ratings moving down to 3rd or 4th slots since the Reliance takeover, behind both Times Now and NDTV. Broadcast Audience Research Council’s data shows ratings in ‘000s have slipped from 199 in June this year (week 21) to 181 in September (week 39), even as NDTV climbed from 189 to 222 in the same period. Even its business channel CNBC has slipped to 2nd place with rating of 226 (week 39) as compared to ET Now’s 237.</div><div> </div><div>Can the new team pull Network18 out of this downward spiral? </div><div> </div><div><div>(This story was published in BW | Businessworld Issue Dated 02-11-2015)</div></div>
