Reliance Industries agreed to purchase the entire 13.01% equity interest of certain Paramount Global’s subsidiaries in Indian conglomerate-owned Viacom18 Media for a value of ₹4,286 Crore ($517 million) on Wednesday.
Reliance, in a joint venture with The Walt Disney agreed to invest ₹11,500 Crore to support the brand’s expansion goal. The company valued the deal at ₹70,352 crore post-money, excluding synergies.
Paramount said the deal will be finalized after the completion joint venture between Reliance, Viacom18 and Walt Disney. The entertainment media company also said after the closing of the agreement it will continue to license its content to Viacom18.
Paramount owns over 25 global media labels including the popularly known Nickelodeon, MTV, Colors, Comedy Central and others.
In late February, the CBS parent missed Wall Street estimates for fourth-quarter revenue, however, posted a surprise profit as streaming gains helped overshadow a weak advertising market, sending its shares up nearly 2% after the bell, reported Reuters News Agency.
Shares of Reliance Industries are marginally up at about ₹2,886. The firm has about 40 channels focusing on general entertainment, multi-generational and multicultural brands across India. JioCinema, Viacom18’s OTT platform, is one popular online platform in the country, predominantly focuses on streaming live sports.
At the time of conversion, $1= ₹82.85
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