India's Richest Man Buys Paramount's Entire Stake In His Broadcasting Unit Viacom18 For $570M

The value of Reliance Industries shares experienced an uptick on Thursday after the announcement of the company's decision to acquire Paramount Global's (NASDAQ: PARA) stake in Viacom18 Media for ₹4,286 crore (approximately $570 million), as per the filing with the exchange by Reliance.

Mukesh Ambani's Reliance Industries' stake in Viacom18 will increase to 70.49% from the current 57.48% ownership via Compulsorily Convertible Preference Shares, following this acquisition. Despite the sale, Paramount Global will continue to supply content to Viacom18. This move, pending regulatory approval, is part of a wider strategy that excludes related parties.

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This acquisition announcement follows the recent declaration of a merger between Reliance Industries and Disney in February. The merger, which aims to establish a ₹70,000 crore (roughly $9.3 billion) titan in the Indian entertainment sector, is expected to be completed between the last quarter of 2024 and the first quarter of 2025. Post-merger, Reliance is set to own 16.34% and Viacom18 will hold a 46.82% stake in the newly formed entertainment behemoth.

As per an earlier report, Paramount is in the process of shedding assets, including its Simon & Schuster publishing wing, as part of an overarching strategy to lower its debt burden.

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Photo via WEF on Flickr