Paramount Global, the New York-based media company, is reportedly in advanced discussions to sell its minority stake in Viacom18 Media Pvt. to Mukesh Ambani’s Reliance Industries Ltd. The potential deal marks a strategic move by Asia’s wealthiest individual to further solidify his influence in one of the world’s fastest-growing entertainment markets.
People familiar with the matter, who requested anonymity due to the private nature of the information, revealed that Paramount and Reliance are actively engaged in talks. However, the negotiations are ongoing, and a final agreement may not materialize, according to the sources.
Viacom18 has been at the forefront of Reliance Group’s foray into the media sector, playing a pivotal role in Ambani’s broader strategy to shift the conglomerate’s focus towards consumer-facing and technology-led businesses. The media company also outbid Walt Disney Co. in 2022 to secure the streaming rights for the Indian Premier League (IPL) cricket tournament.
Paramount’s potential sale of its Viacom18 stake aligns with its broader efforts to reduce debt by divesting assets. Bloomberg Intelligence estimates that the Viacom18 position could generate up to $550 million, providing Paramount with additional resources for debt reduction.
Representatives from Paramount, Viacom18, and Reliance declined to comment on the ongoing discussions.
The move follows Disney’s recent decision to merge its Indian media operations with Reliance, underscoring the trend of global giants ceding ground to local powerhouses. Reliance and its associates will hold a 63% stake in the new $8.5 billion media entity, with Disney retaining the remaining share. As a result of the merger, Paramount’s stake, through Viacom18, is expected to diminish.
The media landscape in India has witnessed significant shifts, with disruptions led by Reliance in sports broadcasting and streaming. The conglomerate’s move to stream IPL cricket games for free disrupted the market, prompting strategic alliances and distribution pacts with global content providers.
