Mukesh Ambani-led Reliance Industries Limited (RIL) has announced its agreement to purchase Paramount Global’s entire 13.01% share in Viacom18 Media for approximately USD 517 million. This acquisition is poised to bolster Reliance’s stronghold in the Indian Media Landscape.
Reliance Stake in Viacom18
Viacom18 Media’s portfolio consists of popular TV channels like Comedy Central, Nickelodeon, and MTV among others, and is predominantly owned by Reliance holding a 57.48% stake. With the addition of Paramount’s shares, Reliance’s ownership in Viacom18 will surge to 70.49% solidifying its position in the Indian media market.
Paramount Global has affirmed its commitment to maintaining its content licensing agreement with Viacom18 after the completion of the deal, ensuring continuity for viewers. Currently, Paramount’s content is accessible through Reliance’s JioCinema platform.
However, the acquisition is contingent upon the finalisation of Reliance’s previously announced merger with Disney for their TV and streaming media assets in India. As per the Bloomberg reports, discussions regarding Paramount’s stake offload in its Indian Media Joint Venture with RIL were in advanced stages as of March 17th, 2024. However, a final agreement had not been reached at the time.
Paramount Global’s strategy to alleviate debt burdens
Paramount Global’s move to divest its Viacom18 stake aligns with its strategy to alleviate debt burdens by shedding assets, including the recent sale of its Simon & Schuster book publishing arm.
For Reliance Industries, led by Chairman and Managing Director Mukesh Ambani, this acquisition marks another strategic step towards consolidating influence in India’s rapidly expanding entertainment market. Ambani’s vision has been to shift RIL’s focus from traditional energy sectors to consumer-centric and technology-driven enterprises.
This acquisition followed the heels of the recent agreement between Disney and Reliance to merge their Indian Media Operations Into a new entity valued at USD 8.5 Billion on a Post-Money Basis.
Also Read |Adani to unveil the plans for Lucknow T3 Airport | NewsStreetAsia
