Reliance Industries has agreed to buy Paramount Global’s entire 13.01% stake in local entertainment network Viacom 18 Media for approximately Rs. 4,286 crore, RIL said in a regulatory filing.
“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,” the filing said.
After the completion of this transaction, Reliance’s equity stake in Viacom18 will increase to 70.49% on a fully diluted basis.
At present, Reliance holds Compulsorily Convertible Preference Shares of Viacom18, representing a 57.48% equity stake.
Viacom18, primarily owned by Reliance, operates a network of 40 television channels, featuring popular brands such as Comedy Central, Nickelodeon, and MTV.
Paramount has affirmed its commitment to continue licensing its content to Viacom18 following the completion of the deal. Paramount’s content is currently available for streaming on Reliance’s JioCinema platform.
Furthermore, the completion of the transaction is contingent upon Reliance’s previously disclosed merger with Walt Disney concerning their television and streaming media assets in India.
Reliance’s Viacom18 Story
The chairman of Reliance Industries, a conglomerate spanning from retail to telecom, harbored ambitions of establishing India’s largest media empire after gaining control of Network18 from its previous promoter, Raghav Bahl, in 2014.
As part of the Network18 acquisition, Viacom18 came under Reliance’s umbrella. Reliance increased its stake in Viacom18 by acquiring an additional 1% from Paramount Global (formerly Viacom) in 2018.
Reliance has long been mindful of Viacom18’s comparatively smaller size compared to competitors like Star, Zee, and Sony. Initially pursuing expansion through a merger with Sony Pictures Entertainment’s India unit, Reliance called off the proposed merger in 2020 due to disagreements over shareholding and valuation.
Following the failed Sony deal, Reliance explored merging Viacom18 with Zee. Although Invesco, then Zee’s largest shareholder, supported the idea and sought changes to the Zee board, the Zee promoters rejected Reliance’s offer and later pursued a deal with Sony, which also faltered in January 2024 after two years of negotiations.
Unable to strike deals with the second and third largest players, Reliance achieved success in its third attempt by acquiring the market leader, Star India. The merger between Star and Viacom18, finalized on February 28, will establish an $8.5 billion media powerhouse with a dominant presence in both television and digital segments.
Reliance-Disney merger
In February, Walt Disney Co and Reliance Industries announced a significant merger to combine their media operations in India, forming a formidable entity valued at Rs 70,000 crore. Under the agreement, Reliance and its affiliates will possess a majority stake of 63.16% in the merged company, which will encompass two streaming services and 120 television channels.
Meanwhile, Disney will retain the remaining 36.84%. Reliance has committed to injecting Rs 11,500 crore into the joint venture upon its closure, enhancing its competitive edge against rivals like Sony and Netflix. This infusion of capital will fortify the joint venture’s position as the leader in the OTT subscriber base.
Nita Ambani will lead the joint venture established between Walt Disney and RIL, with Uday Shankar serving as vice chairperson. Uday Shankar, a former senior executive at Disney, also co-owns Bodhi Tree, a venture with James Murdoch.
This collaboration will position the joint venture as a premier platform for television and digital streaming services, offering a rich array of entertainment and sports content in India. It will consolidate renowned media assets encompassing entertainment channels such as Colors, StarPlus, and StarGOLD, as well as sports channels like Star Sports and Sports18.
Moreover, it will provide access to highly anticipated events through both traditional television broadcasting and digital platforms like JioCinema and Hotstar. With a projected viewership exceeding 750 million within India and extending services to the global Indian diaspora, the joint venture is poised to be a global entertainment powerhouse.
It also secures exclusive distribution rights for Disney films and productions in India, boasting a vast library of over 30,000 Disney content assets, thereby offering a comprehensive entertainment experience for Indian audiences.
