Mukesh Ambani-owned TV18 Broadcast has announced that it will take control of Viacom18 Media Private Ltd by increasing its stake to 51 per cent. Viacom18 is a joint venture between TV18 and Viacom Inc. TV18 will acquire an additional one per cent of Viacom18’s equity from Viacom Inc for $20 million (about ₹128 crore) to take management control.
The move will enable Viacom18 to leverage Ambani’s telecom network RJio for better reach by offering content to mobile users. David Lynn, CEO – Viacom International Media Networks, said in a statement, “Viacom18 is one of the fastest growing companies in India’s dynamic media and technology sector and, as a result of this transaction, we believe it will be even better-positioned for accelerated growth through closer integration and alignment with the Network 18 Group and its affiliates, including India’s fastest growing mobile network Jio."
The brands and content licence agreement between Viacom Inc and Viacom18 also gets extended by 10 years.
TV18 can drive value-addition and synergies across the multi-platform group comprising broadcast, digital, filmed and experiential entertainment and media businesses. Viacom continues to hold 49 per cent in Viacom18.
Adil Zainulbhai, Chairman - Network18, said: “The transaction further enables our vision for Viacom18 to accentuate its focus on excellence and integration in the broadcast and digital space.”
Viacom18 started out as a broadcast business with three channels – MTV, Nickelodeon and Vh1 – in 2007. Today, it has 44 television channels across 80 countries in six languages. It has also diversified into five lines of business, spawning broadcast, digital, films, merchandise and live events.
Viacom18 has reported total revenues of ₹3040.7 crore in the last financial year 2016-17.