Reliance Industries’ shares increased in value on Thursday following the news of the company’s plan to acquire Paramount Global’s stake in Viacom18 Media for ₹4,286 crore (roughly $570 million), according to the filing with the exchange.
Following this transaction, Mukesh Ambani’s Reliance Industries will own 70.49% of Viacom18, up from 57.48% now through Compulsorily Convertible Preference Shares. Regardless of the transaction, Paramount Global will continue to provide content to Viacom18. This move, which requires regulatory permission, is part of a larger plan that excludes connected parties.
This acquisition announcement comes after Reliance Industries and Disney announced their combination in February. The merger intends to establish a ₹70,000 crore (approximately $9.3 billion) behemoth in the Indian entertainment market. It is planned to be completed between the final quarter of 2024 and the first quarter of 2025. Following the merger, Reliance would possess 16.34% of the newly merged entertainment juggernaut, with Viacom18 holding 46.82%.
According to an earlier source, Paramount is in the midst of divesting assets, including its Simon & Schuster publishing division, as part of a larger move to reduce its financial burden.