RIL to acquire Paramount Global's stake in Viacom18 Media for Rs 4,286 cr

In a significant move in the media landscape, Reliance Industries Limited (RIL) has announced a binding agreement to acquire a 13.01% equity stake in Viacom 18 Media from two subsidiaries of Paramount Global. The deal, valued at Rs 4,286 crore, underscores RIL's strategic vision to bolster its presence in the entertainment sector.

Viacom 18 Media, a key player in the Indian media industry and a material subsidiary of TV18 Broadcast Limited, will witness a shift in ownership as RIL advances its footprint. The acquisition, facilitated by two Paramount Global subsidiaries, marks a crucial milestone in RIL's diversification strategy.

Viacom18 is a material subsidiary of TV18 Broadcast Limited. The company currently holds Compulsorily Convertible Preference Shares of Viacom18 representing 57.48% equity stake (on a fully diluted basis). Post the completion of this transaction, the company’s equity stake in Viacom18 will increase to 70.49% (on a fully diluted basis).

RIL clarified that the transaction is not a related party deal, emphasizing transparency and corporate governance. None of the company's promoters or group entities have a stake in the acquisition, further affirming the independence of the move.

Currently, RIL holds a majority stake in Viacom18 through compulsorily convertible preference shares, amounting to 57.48% on a fully diluted basis. With the completion of this transaction, RIL's equity stake in Viacom18 is set to rise to 70.49%, solidifying its position as a major player in India's media landscape.

However, the transaction is subject to regulatory approvals and is contingent upon the completion of a strategic joint venture between Reliance Industries and Disney, announced earlier in February. This underscores the regulatory scrutiny and compliance integral to such corporate maneuvers.

The news has already had a significant impact on RIL's stock performance, with shares surging by 10.61% since the beginning of 2024. Over the past year, RIL's stock has seen a remarkable 36.34% increase, reflecting investor confidence in the company's strategic moves and diversified portfolio.

As RIL continues to expand its presence across various sectors, the acquisition of Viacom 18 Media underscores its commitment to shaping India's media landscape and delivering compelling entertainment experiences to consumers.