Reliance Industries Limited has decided to pay approximately $517 million (INR 4,286 crore) to acquire Paramount Global’s 13.01% ownership of Viacom18 Media. At the moment, Reliance owns a 57.48% stake in Viacom18, a TV18 Broadcast Ltd. subsidiary. Following the completion of the agreement with Paramount, this will rise to 70.49%. Following this deal, Paramount Global will grant Viacom18 content licenses. The completion of the previously announced merger of Reliance and Disney’s TV and streaming assets in India, as well as regulatory approvals, are prerequisites for this deal.
Reliance is the majority shareholder in Viacom18. Viacom18 is a company that owns and operates 40 television channels. It includes well-known ones like MTV, Comedy Central, and Nickelodeon. To provide continuity for viewers and stakeholders, ViacomCBS’ parent company, Paramount Global, reaffirmed its commitment to uphold content licensing agreements with Viacom18 even after the acquisition was completed. Through Reliance’s JioCinema platform, Paramount’s content currently enjoys a broad audience. Furthermore, the acquisition is anticipated to further strengthen this partnership.
Even after the deal is completed, Paramount Global has pledged to keep licensing its content to Viacom18. The existing content is already available for streaming on Reliance’s JioCinema platform. The closing of Reliance’s previously announced merger with Walt Disney, which concerns India TV and streaming media assets, is a requirement for this deal to go through.
Read More: Disney Agrees to Sell 60% of India Business to Reliance-backed Viacom18
Reliance and Disney decided to combine the operations of Viacom18 and Star India into a joint venture in India on February 28. Viacom18 and Star India Pvt Ltd would combine as part of the deal through an arrangement approved by the court. Reliance has also committed to investing INR 11,500 crore in the JV. The deal’s post-money value is INR 70,352 crore. Disney is set to own 36.8% of the project, followed by Reliance at 16.3% and Viacom at 46.8%. Since Reliance owns Viacom18, a TV18 subsidiary, Reliance will, directly or indirectly, hold a majority stake in the joint venture; this position will grow after Paramount.
Reliance’s aggressive media sector expansion is in line with its larger goal of taking advantage of India’s increasing demand for entertainment content. Its position in the Indian media market is strengthened by the acquisition of Paramount’s share of Viacom18. This completes its current portfolio of partnerships and assets. Reliance is well-positioned to strengthen its audience engagement on television and digital platforms. The company will do so through the integration of Viacom18’s wide range of content offerings. It will thereby reinforce its standing as a major participant in India’s rapidly developing media landscape.
The exchange filing mentioned,
“A binding agreement has been entered between Reliance and two subsidiaries of Paramount Global to acquire 13.01% equity stake (on a fully diluted basis) of Viacom 18 Media held by Paramount Global through its two subsidiaries for an aggregate consideration of Rs. 4,286 crore.”
Read More: Reliance and Disney Ink Binding Agreement to Combine Media Business in India
