Reliance, led by Mukesh Ambani, has purchased Paramount Global’s 13% ownership in Viacom18 for $517 million, expanding its entertainment business shortly after an agreement with Disney worth billions of dollars.
With this new acquisition, Reliance’s ownership in Viacom18, which runs numerous TV channels and the streaming service JioCinema, will rise to 70.49%, as stated in a disclosure (PDF) to a local stock exchange. The legal firm JSA Associates confirmed that they were assisting in the deal between the two companies.
This move comes after Disney’s announcement of merging its operations in India with Viacom18 last month. The merger is projected to establish a joint venture valued at $8.5 billion. Viacom18 also has support from Bodhi Tree, an investment company led by James Murdoch and Uday Shankar.
Within a short span, the conglomerate spanning oil and telecommunications has emerged as a dominant force in India’s media industry, home to the largest population globally.
Ambani emphasized that the collaboration with Disney signals a significant milestone ushering in a new era for the Indian entertainment sector.
The joint entity is estimated to reach approximately 85% of the country’s on-demand streaming audience and nearly half of the TV viewers, presenting a formidable competition to platforms like Netflix, Amazon Prime Video, Apple, Sony, and Zee.
The merger, anticipated to be finalized by March 2025, will secure exclusive digital and broadcast rights to various premier sporting events, including the next four seasons of the popular cricket tournament IPL, flagship ICC events, domestic Indian cricket, FIFA World Cup, Premier League, and Wimbledon.
As per the firms’ statement last month, the combined unit aims to engage with over 750 million viewers throughout India. This venture arrives at a time when numerous major media corporations are grappling in the Indian market. Sony recently canceled its plan to merge with Zee Entertainment, bringing an end to a two-year acquisition contemplation that could have established a $10 billion media giant in South Asia.
Disney’s CEO, Bob Iger, mentioned during a conference earlier this month that the company, amidst exploring divesting numerous businesses, wanted to maintain a presence in India, where it made a significant investment by acquiring the assets of 21st Century Fox.
Paramount will sustain licensing its content to Viacom18, as per a U.S. entertainment firm disclosure in an SEC filing (PDF). With Disney India’s Hotstar and Viacom18’s JioCinema, the joint undertaking will host highly sought-after content from Warner Bros., HBO, NBCUniversal, and Disney.
Paramount initiated its investments in India almost twenty years ago, while MTV Networks, a Paramount subsidiary, established Viacom18 in 2007. Subsequently, Paramount Global engaged in a joint venture with TV18, another media entity that Reliance later acquired a majority stake in.
