Japan's Sony Corp is in talks to buy stake in Network18 Media and Investments Ltd, promoted by Mukesh Ambani owned-Reliance Industries (RIL).
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.
Meanwhile, declining to comment further, an RIL spokesman told the news agency, "Our company evaluates various opportunities on an ongoing basis."
The discussions on a possible deal between Sony and Network18 come amid a heating up competition between streaming companies to tap a high viewer base in India's lucrative but crowded digital content market.
Network's channel portfolio comprises VH1, MTV, Nickelodeon, CNBC TV18, news portals such as Firstpost and Moneycontrol and a host of other vernacular channels.
Meanwhile, Sony operates in India through its Sony Pictures Networks India, which operates a bouquets of channels including Sony Entertainment Television, with a reach of nearly 700 million viewers in the country.