Business News : Reliance Industries will buy 13.01% stake in Paramount Global

Mukesh Ambani-led Reliance Industries Ltd on Thursday signed an agreement with two subsidiaries to buy Paramount Global’s stake in Viacom 18 Media Pvt Ltd.

Reliance’s exchange filing said the company has signed a total deal worth Rs 4,286 crore for a 13.01% stake. Viacom 18 TV is a subsidiary of 18 Broadcast Limited. Upon completion of this transaction, Reliance’s equity stake in Viacom 18 will increase to 70.49%.

Currently, Reliance Industries holds 18 compulsorily convertible preference shares of Viacom, amounting to 57.48% equity stake. It is not a related-party transaction and is subject to regulatory approval, according to exchange filings. This is also subject to the completion of the Reliance Industries-Disney merger announced on February 28 this year.

The filing said that Paramount Global will continue to license its content to Viacom18 even after the deal is completed. Reliance Industries and The Walt Disney Co last month announced the merger of their India TV and streaming media assets, creating a Rs 70,000 crore combined entertainment entity.

Reliance Industries will hold 16.34% stake in the combined entity, while Viacom18 will hold 46.82%. Shares of Reliance Industries fell 2.6% on Wednesday, closing at Rs 2,873.20 following selling. The stock is up 26% in the last 12 months.