Paramount Global has sold its entire 13.01% equity interest in Viacom18 Media to Reliance Industries. Post-transaction, Reliance’s equity stake in Viacom18 is slated to increase from 57.48% to 70.49% on a fully diluted basis.
The deal, valued at Rs 4,286 crore ($517 million approx), has been finalized through a binding agreement between Reliance and two subsidiaries of Paramount Global.
According to filings made with the stock exchanges and the US Securities and Exchange Commission (SEC), Reliance disclosed its agreement to acquire a significant stake in Viacom 18 Media Private Limited, a subsidiary of TV18 Broadcast Ltd.
The close of the transaction, revealed in an SEC filing, is subject to regulatory approval and the completion of a previously announced joint venture involving Reliance, Viacom18 and Star Disney.
After the closing, Paramount will continue to license its content to Viacom18.
Propelled by the announcement, Reliance stocks surged over 1% during Thursday morning trading.
On the Bombay Stock Exchange (BSE), Reliance’s shares soared by 1.13% to reach Rs 2,897.35, while on the National Stock Exchange (NSE), they climbed 1.14% to Rs 2,897.05. The development contributed to the company’s market valuation, which stood at an impressive Rs 19,52,171.94 crore during early trading hours.
Paramount Global expressed that the closure of this transaction hinges upon fulfilling customary conditions, including regulatory approvals, and the completion of a joint venture involving Reliance, Viacom18, and Star Disney.
