Viacom18 Becomes Fully Owned by Reliance Industries After Share Conversion

In a significant corporate development, Viacom18 Media, a prominent media and entertainment entity, has now become a direct subsidiary of Reliance Industries (RIL). This strategic shift marks a major step in the consolidation of Reliance's media operations. The change follows the conversion of 24.61 crore compulsorily convertible preference shares (CCPS) into an equivalent number of equity shares, making Viacom18 directly controlled by Reliance Industries.

Viacom18's Ownership Shift: From Network18 to Reliance Industries

The Conversion of CCPS to Equity Shares

On December 30, 2024, Reliance Industries officially converted 24,61,33,682 CCPS into an equal number of equity shares of Viacom18. This conversion received approval from Network18 Media & Investments Ltd's shareholders, as Viacom18 was previously a material subsidiary of Network18. Viacom18 is now fully integrated under the Reliance Industries umbrella, marking a decisive shift in control.

Regulatory Filing and Confirmation of the Change

According to a regulatory filing by Reliance Industries, the company confirmed the status change:
"Consequently, Viacom18 has become a subsidiary of the company effective December 30, 2024, and has ceased to be a subsidiary of Network18. The company received intimation of allotment of equity shares from Viacom18 on December 30, 2024.”

With this transformation, Reliance Industries now holds a direct stake in Viacom18, eliminating any intermediary control by Network18.

Reliance Industries’ Growing Stake in Viacom18

Stake Breakdown Before and After the Conversion

Before the conversion, Reliance Industries had a controlling interest in Viacom18, with a 70.49% stake on a fully diluted basis. This included 5,57,27,821 equity shares and the previously issued 24,61,33,682 CCPS. With the conversion complete, Reliance's ownership has risen to 83.88% of Viacom18’s total equity share capital.

Control of Viacom18 Now Fully with Reliance Industries

As a result of this transaction, Network18 Media no longer has control over Viacom18. Reliance now fully manages Viacom18, strengthening its position in the media sector. Post-conversion, Reliance maintains a 70.49% stake in Viacom18 on a fully diluted basis, consolidating its media empire further.

A Key Acquisition: Paramount Global's Stake and Media Expansion

Reliance Industries Expands Its Media Holdings

In March 2024, Reliance Industries acquired 13.01% stake in Viacom18 from Paramount Global for a substantial sum of Rs 4,286 crore. This acquisition boosted Reliance's overall holding in Viacom18 to 70.49%, further fortifying its position as a dominant force in the Indian media landscape.

The Viacom18 and Walt Disney India Merger

Additionally, in November 2024, Reliance Industries completed a merger of its media empire with Walt Disney’s India business. This strategic merger resulted in the formation of a joint venture valued at over Rs 70,000 crore, which combined the operations of Viacom18, JioCinema, and Star India. The merger was a significant move, with Reliance and Viacom18 receiving shares in exchange for assets and cash, as part of the joint venture's formation.

Conclusion: A New Era for Viacom18 and Reliance Industries

With Viacom18 now firmly under the control of Reliance Industries, the media and entertainment landscape in India is poised for further transformation. The conversion of CCPS into equity shares and the resulting increase in Reliance's stake exemplifies the company’s strategic focus on expanding its media and entertainment business. As Reliance strengthens its foothold in the sector through high-profile acquisitions and mergers, the future of Viacom18 and its associated media properties looks promising.