Reliance buys Paramount's 13% stake in Viacom18 for Rs. 4,286cr
Reliance Industries has entered into a binding agreement to acquire Paramount Global's 13.01% stake in Viacom18 Media for Rs. 4,286 crore, according to an RIL regulatory filing. The acquisition will boost Reliance's control in Viacom18 from the current 57.48% to 70.49% on a fully diluted basis. The deal is part of RIL's ongoing efforts to expand its media empire in India.
Paramount to continue licensing content post-deal
Following the conclusion of the transaction, Paramount Global has committed to continue licensing its content to Viacom18. Currently, Paramount's content is available for streaming on Reliance's JioCinema platform. The deal's finalization is dependent on the completion of merger between Reliance and Walt Disney. The deal involves their television and streaming media assets in India.
Reliance's journey to establish India's largest media empire
Reliance Industries, under the leadership of its chairman Mukesh Ambani, has been working toward creating India's largest media empire since acquiring Network18 in 2014. As part of this acquisition, Viacom18 came under Reliance's control. Despite failed merger attempts between Sony Pictures Entertainment and Zee, Reliance successfully acquired market leader Star India, solidifying its dominant presence in both television and digital segments.
What is the Reliance-Disney deal about?
Two weeks ago, it was reported that Reliance and Disney India are forming a joint venture worth $8.5 billion. Disney and Reliance dominate 40% to 45% of the advertising and streaming markets, which gives them a significant edge over their rival media entities. The merged venture will be the biggest entity in the Indian media, entertainment and sports sector. It will have more than 100 channels, two leading OTT platforms—JioCinema and Disney+ Hotstar—and a viewer base of over 750 million.
