According to reports, Paramount, which is presently attempting to pay down its debts through asset sales, might make $550 million from the ownership.
Talks are underway for Paramount to sell Reliance a portion of Viacom18 Media
According to a media report, Mukesh Ambani’s Reliance is in talks to purchase a minority stake in Viacom18Media Pvt from New York-based Paramount Global.
At Viacom18, Paramount Global owns a 13% share.
Those with the knowledge of discussions claim that they are far along in their stages. It is said that Paramount, which is currently attempting to pay down its debts by selling off assets like its book publishing division Simon & Schuster, could make $550 million from the ownership.
The Walt Disney Company and Viacom 18 Media Private Limited recently announced the signing of legally binding definitive agreements to establish a joint venture (a business entity created by two or more parties) that will integrate the operations of Viacom 18 and Star India.
With synergies excluded, the transaction values the Joint venture at ₹70,352 crore (US$ 8.5 billion) on a post-money basis. After the aforementioned procedures are finished, RIL will be in control of the JV and will own 16.34% of it, followed by Viacom18 at 46.82% and Disney at 36.84%. Disney might also provide the JV with a few more media assets, pending regulatory and third-party approvals.
With the news of Reliance buying a minority share from Paramount in Viacom18 Media, Reliance is surely in the talks. We think it’s no harm to assume how Reliance would further have its dominance in the digital world as they already shook hands priorly with Disney, HBO, Showtime, Peacock, and maybe Paramount Plus, Reliance establishes itself as a dominant player in the media monopoly. Though the strong market presence is nothing but an addition of a various content portfolio Reliance is going to hold and the calculated growth. Reliance comes up as a major player, maybe this could lead to reshaping the dynamics of digital entertainment.