In a strategic move, dominant Indian media and entertainment company Viacom18 Media Private Limited (“Viacom18”) has become a direct subsidiary of Reliance Industries Ltd (RIL), effective December 30, 2024.
This follows the conversion of 246.1 million compulsorily convertible preference shares (CCPS) into an equivalent number of equity shares, formalised on December 30, 2024, and announced in an exchange filing on Tuesday.
Earlier, Viacom18 Media was a material subsidiary of Network18 Media & Investments Ltd, an RIL subsidiary. Following this conversion, Network18 ceases to exercise control over Viacom18, RIL declared.
“Post this conversion, the company holds 83.88 per cent of the total equity share capital of Viacom18 and continues to hold 70.49 per cent on a fully diluted basis,” the industry major announced.
As a result of this restructuring, Reliance now holds a greater stake in Viacom18, further solidifying its control over the company. The merger and acquisition arrangements also align with Reliance’s broader strategy to expand its digital and media business, which has been a key focus in recent years.
For the record, it was in March 2024 that Reliance acquired Paramount Global’s 13.01 per cent stake in Viacom18 for Rs 4,286 crore ($500 million). After this, RIL’s holding in Viacom18 had increased to 70.49 per cent.
On November 14, 2024, RIL completed the merger of Viacom18 with the India business of Walt Disney. The venture was formed after merging the media and JioCinema businesses of Viacom18 into Star India. It has allotted shares to Viacom18 and RIL as consideration for the assets and cash, respectively.
Viacom18, which runs a range of popular television channels and digital platforms, stands to benefit from Reliance’s vast resources and distribution network, providing opportunities for further growth in the fast-evolving media landscape.
This move is expected to enhance Viacom18’s ability to compete in the rapidly expanding digital content space and strengthen its ability to reach consumers through both traditional television and streaming platforms.
Reliance Industries’ increased involvement in Viacom18 marks a critical step in the conglomerate’s media ambitions, which include expanding its footprint in both content creation and distribution. The reshaped structure aims to leverage RIL’s existing infrastructure and business portfolio to create a robust media presence, integrating traditional broadcasting with next-generation digital services.
