Sony in talks to acquire stake in Mukesh Ambani's Network18

With the aim to tap the thriving demand for content in India, Sony presently is carrying out due diligence on Network18 before it comes up with any likely offer

Ambani through a network of subsidiaries owns a controlling stake in

Network18.

With the aim to tap the thriving demand for content in India, Sony presently is carrying out due diligence on Network18 before it comes up with any likely offer, according to a Bloomberg report.

The Japanese giant is reviewing various deal structures, comprising a bid for the company or a merger of Sony's Indian business with Network18's entertainment channels.

Meanwhile, the discussions are in their initial phase and might not conclude in a transaction, the report added.

Network18's shares were trading 15% higher on BSE on Thursday at Rs 29.60, as compared to its previous close.

The deal is a win-win situation for both the companies. If successful, it will aid Sony strengthen its local offerings taking on its competitors such as Netflix and also give Ambani access to international content