Reliance to buy Paramount Global’s 13% stake in Viacom18 for ₹4,286 crore
₹4,286 crore), according to a regulatory filing by the US company. Mint was the first to report that Paramount was likely to sell its stake in Viacom18. Reliance currently owns a 57.48% stake in Viacom18, which is a subsidiary of TV18 Broadcast Ltd.
This will increase to 70.49% after the deal with Paramount is completed. Paramount Global will continue to license content to Viacom18 after this transaction. The deal is subject to regulatory approvals and the completion of the previously announced merger of Reliance and Disney’s TV and streaming assets in India.
On 28 February Reliance and Disney agreed to form a joint venture in India that would combine the businesses of Viacom18 and Star India. As part of the transaction, Viacom18 would be merged with Star India Pvt Ltd through a court-approved scheme of arrangement, the companies said. In addition, Reliance agreed to invest ₹11,500 crore into the JV.
The transaction values the JV at ₹70,352 crore post-money. While Reliance will control the JV with an effective stake of 55-60%, Disney will own 36.84% and Bodhi Tree, a joint venture between Uday Shankar and James Murdoch’s Lupa Systems, will own 6.1%. Disney’s India assets were valued at ₹25,806 crore, a significant markdown due to potential sports losses, said a person with knowledge of the deal details.
Read more on livemint.com
