Paramount Global’s Stake Sale to Reliance Industries

Agreement Details

Paramount Global has reached an agreement to sell its 13% stake in its Indian TV business to Reliance Industries for ₹4,286 crore, as confirmed by Reliance Industries in a statement on Thursday. This transaction involves Reliance acquiring a 13.01% equity stake in Viacom 18 Media Private Limited, held by Paramount Global’s subsidiaries.

Regulatory Approval and Conditions

The completion of the transaction is contingent upon meeting certain customary conditions, including regulatory approvals. Paramount Global highlighted this in a filing with the US Securities and Exchange Commission (SEC).

Continued Collaboration

Post-transaction, Paramount Global intends to maintain its collaboration with Viacom18 by licensing its content to the media company.

Reliance’s Strategic Moves

Reliance Industries, in its stock exchange filing, emphasized that Viacom18 is a significant subsidiary of TV18 Broadcast Ltd. After the acquisition, Reliance’s equity stake in Viacom18 will rise to 70.49% on a fully diluted basis.

Previous Media Merger

Earlier in February, Reliance Industries and Walt Disney Co announced plans to merge their media operations in India, forming a conglomerate valued at Rs 70,000 crore. This merger aims to consolidate two streaming services and 120 television channels under one entity.

Leadership and Investment

Nita Ambani, wife of Reliance chairman Mukesh Ambani, will lead the joint venture, with Uday Shankar as vice chairperson. Reliance has committed to investing Rs 11,500 crore into the venture to bolster its competitiveness against rivals such as Sony and Netflix.

Media Landscape

Reliance’s media ventures are currently under Network 18, which owns TV18 news channels, entertainment channels (including ‘Colors’ brand), sports channels, and digital platforms like moneycontrol.com and bookmyshow. Reliance also holds stakes in movie production (JioStudios) and cable distribution companies (Den and Hathway).

Disney Reliance JV Overview

The joint venture between Walt Disney and Reliance will create a leading TV and digital streaming platform for entertainment and sports content in India. It will offer access to iconic media assets and exclusive rights to distribute Disney films, catering to over 750 million viewers in India and the Indian diaspora worldwide.

Contrast with Sony-Zee Merger

The Disney-Reliance merger stands in contrast to the failed merger between Sony and Zee, which was called off last month. This failed merger, valued at USD 10.5 billion, has resulted in legal disputes between the two parties.