For Rs 4,286 crore, Reliance will purchase Paramount’s 13% share in Viacom18
For around $517 million (about Rs 42.86 billion), Reliance Industries (RIL) has announced that it has agreed to buy Paramount Global’s whole 13.01 percent ownership in Viacom 18 Media. The transaction, which was made public via US regulatory filings, is a big step forward for Reliance Industries. It increases the company’s ownership of Viacom18, which runs a varied portfolio of 40 television channels and comprises well-known brands including Comedy Central, Nickelodeon, and MTV.
In order to provide continuity for viewers and stakeholders, ViacomCBS’ parent company, Paramount Global, reaffirmed its pledge to uphold content licencing agreements with Viacom18 even after the sale is finalized. Through Reliance’s JioCinema platform, Paramount’s programming now has a broad audience, and the acquisition is anticipated to further deepen this cooperation.
Reliance would pay an overall consideration of Rs. 4,286 crore to acquire the share held by Paramount Global via its subsidiaries in the agreement, which was completed at 1:38 a.m. A significant part of India’s media landscape is played by Viacom18, a major subsidiary of TV18 Broadcast Limited. Reliance’s enhanced equity share, post-acquisition, would climb to 70.49% on a fully diluted basis, demonstrating Reliance’s commitment to growing its media sector footprint.
This purchase is contingent upon the conclusion of Reliance’s previously announced merger with Disney for their TV and streaming media assets in India. With Disney owning a minority part, the $8.5 billion transaction will create a strong corporation, mostly held by Reliance and its affiliates. The action is in line with Mukesh Ambani’s goal of positioning Reliance as a leader in the changing entertainment industry and highlights the company’s shift from fossil fuels to consumer-focused and technology-driven businesses.
The sale of Paramount’s interest in Viacom18 is part of the company’s larger plan to reduce its debt via asset sales. In an effort to reduce its debt, Paramount has been aggressively exploring sales of its book publishing division, Simon & Schuster. According to reports, talks on Paramount’s share in its joint venture with RIL in the Indian media industry are progressing, which is in keeping with Paramount’s continuous attempts to improve operational efficiency and financial stability.
According to analysts at Bloomberg Intelligence, Paramount’s debt reduction plan might be significantly bolstered by the sale of its Viacom18 holding, which could bring in as much as $550 million. It is also believed that producer David Ellison is making a bid to purchase the Redstone family’s majority stake in the corporation, demonstrating Paramount’s determination to diversify its lines of business.
Reliance’s bold move to join the media space is in line with its larger goal of taking advantage of India’s increasing demand for entertainment material. Reliance’s position in the Indian media scene is strengthened by the purchase of Paramount’s interest in Viacom18, which enhances and expands its current portfolio of partnerships and assets. Reliance is well-positioned to further strengthen its position as a major player in India’s emerging media business by improving its connection with viewers across television and digital platforms via the integration of Viacom18’s broad content offerings.
The move by Disney to combine its media businesses in India with Reliance highlights how the Indian entertainment sector is changing. With its disruptive strategy—best shown by its free broadcasting of IPL cricket matches—Reliance has upended established players and altered customer preferences. The scene is set for a rapid change of India’s entertainment industry, with Reliance positioned to play a leadership role in determining its future, as it continues to spend in growing its media reach.
