Mukesh Ambani-led Reliance Industries Ltd. signed a binding agreement on Thursday with two subsidiaries of Paramount Global to acquire the latter's stake in Viacom18 Media Pvt. Ltd. for an aggregate consideration of ₹4,286 crore, Reliance's exchange filing stated.
Viacom 18 is a material subsidiary of TV18 Broadcast Ltd. On completion of this transaction, Reliance's equity stake in Viacom18 will increase to 70.49% on a fully diluted basis.
Currently, Reliance Industries holds Compulsorily Convertible Preference Shares of Viacom18, representing a 57.48% equity stake.
This is not a related-party transaction and is subject to regulatory approvals. It is also subject to completion of the Reliance Industries-Disney merger announced on February 28 this year.
Paramount Global will continue to license its content to Viacom18 even after the completion of the deal, the filing stated.
Reliance Industries and The Walt Disney Company last month, had announced the merger of their India TV and streaming media assets, creating a ₹70,000 crore entertainment behemoth.
Reliance Industries will own 16.34% in the combined entity, while Viacom18 will have a 46.82% stake.
Shares of Reliance Industries fell 2.6% on Wednesday, in-line with the overall market sell-off to close at ₹2,873.20. The stock has gained 26% over the last 12 months.
Note To Readers
Disclosure: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Prajwal Revanna's father in custody for alleged kidnapping and sexual abuse
May 4, 2024 7:53 PM
Delhi, Indore, Surat and Banswara — why these are the most challenging domains for Congress internally
May 4, 2024 1:53 PM
Congress nominee from Puri Lok Sabha seat withdraws, citing no funds from party
May 4, 2024 12:00 PM
Lok Sabha Polls '24 | Rahul Gandhi in Rae Bareli, why not Amethi
May 4, 2024 9:43 AM