Reliance Industries has agreed to acquire Paramount Global’s 13 pc stake in Viacom18 Media for Rs 4,286 crore, as per a recent regulatory filing by RIL.
The deal entails a binding agreement to purchase 13.01 pc of Viacom18’s equity stake, held by Paramount Global’s subsidiaries. The deal will help Reliance to further its majority holding in the joint venture.
Following this acquisition, Reliance’s equity stake in Viacom18 will rise to 70.49 pc on a fully diluted basis, up from the current 57.48 pc stake through Compulsorily Convertible Preference Shares.
All existing content deals between Reliance and Paramount will stay intact as the later has informed through a US regulatory filing that it will continue licensing its content to Viacom18 even after the deal is finalized. Paramount already streams its content through Reliance’s JioCinema.
Viacom18, a joint venture between Reliance Industries-backed TV18 and Paramount Global, was established in 2007. It has 40 television channels, including Colors franchise, Comedy Central, Nickelodeon and MTV.
In the month of February, RIL, Viacom18, and Disney have signed binding agreements to merge Viacom18’s media business with Star India, forming a joint venture. RIL will invest ₹11,500 crore (~US$1.4 billion) at closing to fuel the JV’s growth strategy.
