Viacom18 Media, one of India’s leading media and entertainment companies, is now a direct subsidiary of Reliance Industries Limited (RIL). This change follows the conversion of over 24.61 crore compulsorily convertible preference shares (CCPS) into equity shares, strengthening Reliance’s control over Viacom18.
Shift from Network18 to Reliance
Previously, Viacom18 Media was a material subsidiary of Network18 Media & Investments Ltd, which itself is a subsidiary of RIL. On December 30, 2024, RIL, led by billionaire Mukesh Ambani, completed the conversion of 24,61,33,682 CCPS into equity shares. This move was approved by the shareholders of Network18, enabling Viacom18 to transition from being under Network18’s control to becoming directly managed by Reliance Industries.
Reliance Stake in Viacom18
Before this conversion, Reliance held a 70.49% stake in Viacom18 on a fully diluted basis. This comprised 5,57,27,821 equity shares and 24,61,33,682 CCPS. Following the conversion, Reliance now owns 83.88% of Viacom18’s total equity share capital, while its fully diluted stake remains at 70.49%. This marks a significant milestone in Reliance’s strategy to consolidate its position in the media and entertainment sector.
Shareholders Approval for Transition
The shareholders of Network18 had previously approved the plan for Viacom18 to cease being a subsidiary of Network18. This approval allowed Network18 to relinquish control over Viacom18, paving the way for Reliance to directly oversee the media giant. The conversion of CCPS into equity shares was a crucial step in this transition, reflecting Reliance’s commitment to strengthening its media portfolio.
Merger with Walt Disney India Business
This development follows Reliance’s strategic merger of its media empire with the India business of global media giant Walt Disney. Completed on November 14, 2024, the merger created a joint venture valued at over Rs 70,000 crore. The venture combined Viacom18’s media assets and JioCinema with Star India, a prominent player in the Indian entertainment industry. As part of the deal, shares were allotted to Viacom18 and RIL in exchange for assets and cash contributions.
Reliance Vision for Media Expansion
Reliance Industries has been actively expanding its footprint in the media and entertainment sector. By converting Viacom18 into a direct subsidiary, Reliance aims to streamline its operations and maximize synergies across its media ventures. The company’s stake in Viacom18, combined with the merger with Walt Disney’s India business, positions Reliance as a dominant force in the Indian media landscape.
Future Prospects
With Viacom18 now under direct control, Reliance is expected to focus on innovation and growth in its media offerings. The joint venture with Star India and JioCinema further enhances Reliance’s ability to deliver premium content to a diverse audience. This strategic consolidation aligns with Reliance’s long-term vision of becoming a global leader in media and entertainment.
