Mumbai, India – Paramount Global has reached an agreement to sell its 13 percent stake in Viacom18, an Indian media company, to Reliance Industries for approximately $517 million, according to a recent securities filing. Reliance Industries, a multinational conglomerate, is already the majority shareholder in Viacom18, which boasts properties such as the streaming service JioCinema and popular channels like Colors, Comedy Central, and MTV.
In a strategic move, Disney previously entered into a deal with Reliance Industries to establish a joint venture combining Reliance’s Viacom18 and Disney’s Star India. Under this arrangement, Reliance will invest $1.4 billion into the joint venture, which has a total valuation of $8.5 billion. Disney will provide a content license to the joint venture and may also contribute additional media assets, pending regulatory approvals. Additionally, the joint venture will hold exclusive rights to distribute Disney films and productions in India.
The sale of Paramount’s stake in Viacom18 is contingent on regulatory approvals and the completion of a previously announced joint venture involving Reliance, Viacom18, and Star Disney. Despite the transaction, Paramount will continue to license its content to Viacom18.
The agreement with Reliance comes at a time when Paramount’s future is surrounded by uncertainty. Talks of a potential merger between Paramount and Warner Bros. Discovery were held in December, and more recently, media mogul Byron Allen submitted a $30 billion offer, including debt and equity, for Paramount Global.
The dynamics of the media industry in India are shifting as major players like Reliance Industries and Disney make strategic moves to strengthen their positions in the market. It remains to be seen how these developments will impact the landscape of media and entertainment in the region moving forward.