Paramount Global Exits India as Reliance Acquires Viacom18 Stake

19 Mar 2024 , 02:16 PM

Paramount Global, the parent company of MTV, is selling its entire stake in Viacom18 to Mukesh Ambani’s Reliance Industries, signaling its exit from India’s media and entertainment industry.

Reliance Industries will acquire Paramount’s 13.01% stake in Viacom18 for approximately $517 million (₹4,286 Crore), according to a regulatory filing.

Despite the stake sale, Paramount Global will continue to license content to Viacom18 post-transaction completion, subject to regulatory approvals and the Reliance-Disney merger.

Reliance currently holds a 57.48% stake in Viacom18, which will increase to 70.49% after the deal with Paramount.

The collaboration between TV18 and Paramount began in 2007, leading to the formation of Viacom18 and the launch of channels like Colors in 2008.

Paramount’s decision to exit follows Reliance’s aggressive foray into sports, leading to the merging of Viacom18 and Star India under a joint venture agreement with Disney.

The joint venture between Reliance and Disney will dominate the Indian media landscape, encompassing TV channels, sports networks, and OTT platforms like JioCinema and Hotstar.

Reliance’s expansion into media, coupled with Disney’s assets, may lead to a dominant market position and increased bargaining power for TV ad rates.

The merger will create a media conglomerate with approximately 100 TV channels and substantial programming hours, potentially impacting smaller competitors.

Paramount’s divestment from Viacom18 aligns with its strategy to reduce debt and streamline operations amid ongoing restructuring efforts.

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