RIL to acquire Paramount Global's 13% stake in Viacom18 for Rs 4,286 crore

Reliance Industries has entered a binding agreement to acquire the entire 13.01% equity stake of Paramount Global in Viacom18 for an aggregate consideration of Rs 4,286 crore.

In a regulatory filing, Reliance Industries wrote, “The binding agreement has been entered into today at 1:38 a.m. between the Company and two subsidiaries of Paramount Global for the Company to acquire 13.01% equity stake (on a fully diluted basis) of Viacom 18 Media Private Limited (“Viacom18”) held by Paramount Global through its two subsidiaries for an aggregate consideration of Rs. 4,286 crore.”

Viacom18 is a subsidiary of TV18 Broadcast. Reliance currently holds Compulsorily Convertible Preference Shares of Viacom18 representing 57.48% equity stake (on a fully diluted basis).

Post the completion of this transaction, Reliance’s equity stake in Viacom18 will increase to 70.49% (on a fully diluted basis).

On February 28, 2024, The Walt Disney Company sold its India business to Mukesh Ambani’s Reliance Industries at a $3.5 billion valuation, which it bought from Rupert Murdoch for $14 billion seven years ago.

Effectively, RIL paid USD 2.2 billion (about Rs 18,000 crore) for a 63% stake in the JV.

If regulators and shareholders approve, it will create a Rs 70,000 crore-behemoth.

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