TV18 Broadcast and Viacom Inc, joint-venture partners in Viacom18 Media, today announced that TV18 shall take operational control of Viacom18. TV18 shall raise its stake to 51 per cent by acquiring 1 per cent of Viacom18's equity from Viacom Inc. for a cash consideration of $20 mn. The brands and content licence agreement between Viacom Inc. and Viacom18 will also be extended by 10 years. As per the press note, Viacom continues to hold 49 per cent in Viacom18 and shares TV18's vision for scalability and enhanced efficiency at Viacom18.
Adil Zainulbhai, chairman, Network18, says, "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 the Network18 group's and affiliates' strength across the media and telecom value-chain"
David Lynn, CEO, Viacom International Media Networks, says, "Viacom18 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 Viacom18 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 licencing deal with Viacom18 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, Viacom18, adds, "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-theatre and on-ground businesses and enriching the digital life of every Indian."