Reliance will buy Paramount’s 13.01% stake in Viacom18: Deal signed for Rs 4,286 crore, RIL’s stake in the company will increase to 70.49%.
Reliance Industries is going to buy Paramount Global’s total 13.01% stake in local entertainment network Viacom 18 Media. This deal between the two companies has been done for 517 million dollars (about Rs 4,286 crore).
After completion of this deal, Reliance’s stake in Viacom 18 will increase from 57.48% to 70.49%. The 13.01% stake that Paramount Global is selling in Viacom belongs to its two subsidiaries.
Viacom18 has a network of 38 TV channels.
Both the companies have given information about this deal in their respective regulatory filings. Viacon 18 is a company owned by Reliance. It has a network of 38 TV channels like Comedy Central, Nickelodeon and MTV.
Paramount will continue licensing content to Viacom
American company Paramount will continue licensing its content to Viacom even after this deal, i.e. after selling its total stake. Paramount’s content is currently streamed on Reliance’s JioCinema.
Its transaction will depend on Reliance-Disney deal
However, the completion of this transaction is dependent on the already signed merger deal between Reliance and Walt Disney. Recently, Reliance Industries, Viacom 18 and Walt Disney have signed a joint venture agreement.
Under the deal, Viacom 18 will be merged into Star India. Nita Ambani will be the chairperson of the new company. Former Walt Disney executive Uday Shankar will be the vice chairperson.
Will be the largest company in media, entertainment and sports sector
After completion of the deal, it will become the largest company in the Indian media, entertainment and sports sector. It will have more than 100 channels in different languages, two OTT platforms and a viewership base of 75 crore across the country. The deal is expected to be completed in the last week of 2024 or early 2025.