Mukesh Ambani-led Reliance Industries (RIL) has agreed to purchase Paramount Global’s entire 13.01 percent share in Viacom18 Media for around $517 million ( ₹42.86 billion), the company has informed as per US regulatory filings.
Viacom18, which counts Comedy Central, Nickelodeon, and MTV among its 40 television channels, is predominantly owned by Reliance.
Paramount confirmed it would maintain its content licensing agreement with Viacom18 after the deal’s closure, Reuters reported. Currently, its content is accessible via Reliance’s JioCinema platform.
This acquisition is contingent upon the finalisation of Reliance’s previously announced merger with Disney for their TV and streaming media assets in India.
On March 7 Bloomberg reported that New York-based Paramount Global is in talks to offload its stake in its Indian media joint venture (JV) with RIL.
Sources had told Bloomberg the discussions were advanced but may not necessarily lead to a final agreement.
Representatives for Paramount, Viacom18, and Reliance did not respond to queries, it added.
Also Read | Disney merger in sight, Viacom18 rejigs top roles
Debt Reduction Strategy
Paramount, the parent company of CBS, MTV, and other prominent networks, has been divesting assets, including its Simon & Schuster book publishing arm, to alleviate its debt burden. Additionally, it is considering an offer from producer David Ellison to acquire the Redstone family’s controlling interest in the company and integrate his Skydance Media studio into Paramount.
Analysts at Bloomberg Intelligence estimate that the sale of Paramount’s Viacom18 stake could yield up to $550 million, which could be used to reduce the company’s debt.
Reliance’s Media Expansion
This move comes as CMD Mukesh Ambani, who is also Asia’s wealthiest person, aims to consolidate his influence in one of the globe’s fastest-growing entertainment markets. His strategy has been to transition RIL from fossil fuels to consumer-focused and technology-driven enterprises.
Last month, Disney and Reliance inked a binding agreement to merge their Indian media operations. The merged entity, valued at $8.5 billion, will be predominantly owned by Reliance and its affiliates, with Disney holding a minority stake.
Disney’s move to merge with Reliance follows its struggles in retaining subscribers. Reliance disrupted the sports broadcast segment by streaming IPL cricket matches for free in India, a nation with a massive cricket fan base.
(With inputs from Reuters and Bloomberg)
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Published: 14 Mar 2024, 06:27 AM IST