ViacomCBS considers reducing its stake in the joint venture, Reliance Industries is in talks with investors to finance as much as $1.6 billion for its broadcasting operation, according to two individuals who spoke to Reuters on Thursday morning. One of the sources with direct information stated that Reliance is in talks with a venture capital firm established by James Murdoch, the son of media magnate Rupert Murdoch, and former Disney India executive Uday Shankar to purchase a large interest in the Viacom18 joint venture.
Currently, Reliance maintains a 51 percent ownership in Viacom18, with the remaining 49 percent held by ViacomCBS. Viacom18 is a media company that owns and operates many television networks in India, including Nickelodeon and Comedy Central. The Indian media, which broke the news of the talks earlier on Thursday, said that if the sale goes through, Reliance would retain majority ownership in the company, with ViacomCBS’s investment likely to shrink to 10 percent.
According to Reliance, an Indian conglomerate led by Mukesh Ambani, the country’s richest man, the firm declined to comment, adding the “enterprise assesses numerous prospects on an ongoing basis.” Requests for comment from ViacomCBS, Rupert Murdoch, and Shankar did not receive an immediate response.
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The conversations are taking place at a time when competition in India’s thriving broadcasting business is increasing. Sony’s (6758.T) India entertainment company has announced ambitions to acquire local rival Zee (ZEE.NS), combining television channels, film assets, and streaming platforms to establish itself as the industry’s dominating player. Indians are quickly adopting streaming platforms such as Netflix Inc. and Amazon.com Inc.’s Prime Video, which have been attracting customers with lower-cost plans and material in their native language for several years.
