Reliance to acquire Paramount's 13% stake in Viacom18 for ₹4,286 cr; stock gains 1%
Post the completion of this transaction, TV18 Broadcast’s equity stake in Viacom18 will increase to 70.49%.
Post the completion of this transaction, TV18 Broadcast’s equity stake in Viacom18 will increase to 70.49%.
The Reliance-Viacom18-Disney deal will add ₹40 per share to RIL’s sum-of-the-parts valuation (SOTP), says Jefferies.
Reliance Industries shares gained 3% to hit a fresh all-time high of ₹2,937.80 today, while market capitalisation touched record high of ₹19.86 lakh crore mark.
This feat makes the Indian board richer by ₹5,963 crore and gives Viacom18 the right for 88 matches.
Reliance Industries has made an investment of ₹10,839 crore, whereas Bodhi Tree Systems invested ₹4,306 crore in the joint venture.
With this, the company has committed ₹951 crore between 2023 and 2027. For each match of total 22 IPL matches every year, Viacom18 will pay ₹7.09 for the next five years.
In April, Bodhi Tree tied up with Viacom18 to form one of the largest TV, digital streaming firms. As per the deal, JioCinema OTT app was to be transferred to Viacom18.
Viacom18 is also looking at overhauling the look and feel of its app, along with delivering bespoke content for Indian audiences.
Synergies with Jio will be leveraged to deliver a product and user experience which will be far superior to linear broadcast, exclaims Viacom18 CEO Jyoti Deshpande.
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