Reliance Industries Limited (RIL) has recently entered into a definitive agreement with two subsidiaries of Paramount Global, signaling its strategic move to acquire a substantial 13.01% equity stake (on a fully diluted basis) in Viacom 18 Media Private Limited (commonly known as Viacom18). The transaction, valued at a significant Rs. 4,286 crore, underscores RIL’s firm commitment to expanding its presence in the ever-evolving media landscape.
Viacom18, a vital subsidiary within the media conglomerate TV18 Broadcast Limited, will experience a notable change in its ownership structure as a result of this agreement. It’s noteworthy that RIL presently holds compulsorily convertible preference shares in Viacom18, representing a sizable 57.48% equity stake (on a fully diluted basis). Upon the successful completion of this acquisition, RIL’s equity interest in Viacom18 is poised to escalate to 70.49% on a fully diluted basis, further solidifying its position as a dominant player in the media and entertainment industry.
Furthermore, it’s crucial to note that the acquisition in question does not constitute a related party transaction, and there is no involvement or interest from any of Reliance Industries Limited’s promoters, promoter group, or affiliated companies. This distinction underscores the transparency and independence of the transaction.
However, it’s essential to highlight that the completion of the acquisition is contingent upon obtaining regulatory approvals. Additionally, it is subject to the fulfillment of the conditions outlined in the media release titled ‘Reliance and Disney announce strategic joint venture to bring together the most compelling and engaging entertainment brands in India,’ which was officially disclosed by the company on February 28, 2024.