Reliance Industries, owned by Mukesh Ambani, has announced an agreement to acquire Paramount Global's entire 13.01% stake in Viacom18 Media, an Indian entertainment network, for around $517 million (approximately Rs 4,286 crore). This acquisition, disclosed in a regulatory filing by RIL, solidifies Reliance's position as the majority shareholder in Viacom18.
Viacom18 Media encompasses a wide range of 40 television channels, including popular networks like Comedy Central, Nickelodeon, and MTV. With this deal, Reliance's equity ownership in Viacom18 will increase to 70.49% on a fully diluted basis, up from its current stake of 57.48% through Compulsorily Convertible Preference Shares.
According to the exchange filing, the agreement involves Reliance acquiring Paramount Global's stake in Viacom18 for the specified amount of Rs. 4,286 crore.
Paramount Global has affirmed its commitment to continue licensing its content to Viacom18 even after the deal's completion. Existing content from Paramount Global is already available on Reliance's JioCinema platform.
However, the finalization of this acquisition is subject to Reliance's previously announced merger with Walt Disney, focusing on India TV and streaming media assets.
Reliance also recently announced its merger with Disney Hotstar, thus declaring its dominance in the OTT and Digital space.
It remains to be seen how the dominance of a single company will reshape the content streaming platforms in the country and pose a challenge to international players.
