TV18 picks controlling stake in Viacom18; pays $20 mn for 1% stake

TV18 Broadcast and Viacom, joint venture partners in Viacom18 Media Private Limited, announced that the Reliance Industries-owned TV18 shall take operational control of broadcast and entertainment network Viacom18. TV18 shall raise its stake to 51 per cent by acquiring 1 per cent of Viacom18’s equity from Viacom for a cash consideration of $20 million. Viacom continues to hold 49 per cent in Viacom18.

The brands and content licence agreement between Viacom and Viacom18 also got extended by 10 years.

Viacom18 was established in 2007 as a 50:50 JV between the two. It is home to TV brands like MTV India, Colors, and VH1, and has expanded beyond television into live events and digital entertainment. TV18 is a subsidiary of Raghav Bahl-founded Network18 Media Investment, which was bought by Reliance Industries-promoted 

Independent Media Trust in 2014. 

The partners, in a joint statement, said that both believed in the fast-evolving media and entertainment landscape in India, and that TV18 can drive value-addition and synergies across the multi-platform group comprising broadcast, digital, filmed and experiential entertainment and media businesses.

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. The entertainment powerhouse continues to be bolstered by Viacom’s global expertise in content creation and curation, along with Network18 group and affiliates’ strength across the media & telecom value-chain.”

David Lynn, CEO, Viacom International Media Networks, said, “Viacom 18 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. Viacom remains strongly committed to our Viacom 18 joint venture with the Network 18 Group and we are retaining the vast majority of our ownership stake in the company. We’re delighted to extend our licencing deal with Viacom 18 and see clear potential to expand it in live events and recreation, in line with our growing global presence in these lines of business.”

Sudhanshu Vats, group CEO, Viacom18, said, “We turned 10 last year and our growth journey has been exciting to say the least. None of this would have been possible without the support and commitment of both our partners. This development will allow us to leverage deeper synergies with Jio as we enter our next growth phase. As India’s youngest full-play media organization, we remain committed to winning the hearts of our audiences across all our on-air, on-line, in-store, in-theatre and on-ground businesses and enriching the digital life of every Indian.”

Viacom18 operates 44 television channels across 80 countries in six different languages. It has also diversified into five lines of business, spawning broadcast, digital, films, merchandise and live events. Viacom18 has reported total revenues of Rs 30.407 million in fiscal year 2016-17.