TV18 Broadcast is raising its stake in Viacom18, which it operates as a joint venture with Viacom, to 51 percent, giving it operational control.
TV18 is acquiring an additional 1 percent of Viacom18’s equity from Viacom for a cash consideration of $20 million. Viacom continues to hold 49 percent in Viacom18.
The brands and content license agreement between Viacom and Viacom18 also gets extended by ten years.
Adil Zainulbhai, chairman of 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 of 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 licensing 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 of 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, online, in-store, in-theater and on-ground businesses—and enriching the digital life of every Indian.”