Viacom18 Media has officially become a direct subsidiary of Reliance Industries Limited (RIL) following the conversion of over 24.61 crore compulsorily convertible preference shares (CCPS) into an equivalent number of equity shares. This strategic shift further consolidates RIL’s hold over its media assets and aligns with its broader media expansion strategy.
Conversion of Preference Shares
On December 30, 2024, Reliance Industries converted 24,61,33,682 CCPS into equity shares after receiving approval from Network18 shareholders. Previously, Viacom18 operated as a material subsidiary of Network18 Media & Investments Ltd, itself a subsidiary of Reliance Industries.
In a regulatory filing, RIL stated, “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.”
Stakeholding Breakdown
Before the conversion, Reliance Industries held a 70.49% stake in Viacom18 on a fully diluted basis, including 5,57,27,821 equity shares and 24,61,33,682 CCPS. Post-conversion, RIL now holds an 83.88% equity stake in Viacom18, while maintaining its 70.49% stake on a fully diluted basis.
The shift also means that Network18 no longer exercises control over Viacom18, marking a significant realignment in the corporate structure of RIL’s media assets.
Strategic Media Consolidation
This development follows a series of strategic acquisitions and mergers within RIL’s media empire. In March 2024, RIL acquired Paramount Global’s 13.01% stake in Viacom18 for ₹4,286 crore, solidifying its control over the entity.
In November 2024, RIL also completed a high-profile merger with Walt Disney’s India business, creating a joint venture valued at ₹70,000 crore. This deal combined Viacom18’s media assets and JioCinema platform with Star India, a significant move in consolidating RIL’s dominance in India’s entertainment industry.
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Implications for the Media Landscape
Viacom18’s transition to a direct subsidiary underscores RIL’s intent to streamline and strengthen its media business. With control now firmly under RIL, Viacom18 is better positioned to capitalize on opportunities in India’s growing digital and entertainment sectors.
This restructuring aligns with RIL’s long-term vision of becoming a dominant force in India’s media and entertainment landscape, leveraging synergies across its digital platforms and content distribution channels.
Future Prospects
The integration of Viacom18 into RIL’s core structure sets the stage for further strategic investments, content innovation, and expansion across digital and traditional media verticals. With an expanded portfolio and robust financial backing, Viacom18 is poised to play a pivotal role in driving RIL’s media ambitions on both national and global fronts.
