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NSE: Reliance Share Price has decreased by -71.20 in the last 1 month, +632.95
Mukesh Ambani-led Reliance Industries has signed a big deal to strengthen its hold in the media and entertainment sector. Reliance has agreed to buy a 13.01 percent stake in Paramount Global’s Viacom18 Media for Rs 4300 crore.
About the deal:
- Price: Rs 4300 crore
- Stake: Paramount Global holds a 13.01 percent stake in Viacom18 Media.
- Impact: After this deal, Reliance will become the largest shareholder in Viacom18 Media.
About Viacom18 Media:
- Leading media and entertainment company: Operates over 40 channels in India, including MTV, Comedy Central, and Nickelodeon.
- Popular Streaming Service: Operates Voot, one of the most popular streaming services in India.
Significance of this deal:
The deal will make Reliance a major player in India’s media and entertainment market. This deal will allow Reliance to provide more content for its Jio platform, which will be attractive to Jio users. This deal will help Paramount Global in reducing its debt.
Why is Paramount Global selling its stake:
Paramount Global is working on a plan to reduce debt. It is also reducing its stake in MTV, CBS, and book publishing company Simon and Schuster.
Example:
After this deal, Reliance will own a 57.48% stake in Viacom18 Media. This means that Reliance will hold a majority stake in the board of Viacom18 Media and control key decisions of the company.
This deal will provide Reliance with more content for Jio Platforms. Jio users will now be able to watch all the shows and movies available on Voot on JioCinema.
This deal will help Paramount Global in reducing its debt. Paramount Global will use the funds from the deal to reduce its debt and improve its financial position.
About Paramount Global
Paramount Global, an American multinational mass media and entertainment conglomerate, is under the control of National Amusements and is headquartered at One Astor Plaza in Midtown Manhattan, New York City. Robert M. Bakish has been serving as the CEO since December 2019.
The company was founded on December 4, 2019. With a workforce of 21,900 employees as of 2023, Paramount Global operates under the umbrella of its parent organization, National Amusements. In terms of revenue, the company reported USD 726.5 million in the first quarter of 2023. Paramount Global’s notable subsidiaries include Paramount Pictures, Paramount+, CBS, and Nickelodeon.
conclusion:
This deal will bring a major change in India’s media and entertainment market. Reliance has now become a major player in this sector and it may sign even more deals in the times to come.