Reliance announced in a stock exchange filing that it had inked a legally binding contract with two Paramount Global companies to purchase Paramount Global’s 13.01 percent equity holding in Viacom 18 Media Private Limited.
Reliance Industries has agreed to purchase Paramount Global’s 13% interest in its Indian TV division for a sum of Rs 4,286 crore, the Indian company announced on Thursday.
Reliance announced in a stock exchange filing that it had inked a legally binding contract with two Paramount Global companies to purchase Paramount Global’s 13.01 percent equity holding in Viacom 18 Media Private Limited.
Similarly, Paramount Global stated in a filing with the US Securities and Exchange Commission (SEC) that the completion of a previously announced joint venture involving Reliance, Viacom18, and Star Disney, as well as the satisfaction of certain customary conditions, such as receiving applicable regulatory approvals, are prerequisites to the transaction closing.
“After the closing, Paramount will continue to license its content to Viacom18,” it added.
Reliance Industries Ltd. (RIL) stated that Viacom18 is a division of TV18 Broadcast Ltd. in a stock exchange filing. Presently, the corporation owns compulsorily convertible preference shares in Viacom18, which, when completely diluted, equal 57.48 percent of the company’s ownership holding. The company’s fully diluted ownership position in Viacom18 will rise to 70.49 percent following the completion of this transaction.
Walt Disney Co. and Reliance Industries had earlier in February announced that they had signed legally binding agreements to combine their media businesses in India to form a Rs 70,000 crore conglomerate.
As per the agreement, which was reached barely over a month after competitors Zee and Sony attempted to merge for USD 10 billion, Reliance and its affiliates will own 63.16 percent of the combined company, which will include 120 television channels and two streaming services.
