I&B ministry Allows Viacom 18 To Transfer TV Channels To Star
I&B ministry Allows Viacom 18 To Transfer TV Channels To Star
Valued at $8.5 billion, it will create a media giant with 117 channels across various genres
The Ministry of Information and Broadcasting has approved the transfer of TV channel licences from Viacom18 to Star India of Walt Disney, completing the final step in their merger.
Valued at $8.5 billion, the merger will generate significant cost and revenue synergies. According to a stock exchange filing by Reliance Industries Ltd, it is subject to conditions set by the Competition Commission of India (CCI).
Viacom’s 40 TV channels will join Star's 77, expanding the portfolio to 117, including entertainment, sports, kids and youth programs.
This ministry’s approval is the last clearance to finalize the merger announced on 28 February. The deal received approvals from the National Company Law Tribunal (NCLT) and the competition watchdog.
The CCI's approval is contingent upon compliance with voluntary modifications to the merger scheme. A full order of the Commission is expected soon.
Recently, the Mumbai bench of the NCLT sanctioned the merger scheme, under which Viacom18 will first transfer its assets to a wholly-owned subsidiary, Digital18. Subsequently, these will be transferred to Star in exchange for shares.
Star will then operate as the main company, with Reliance holding a 56 percent stake and Walt Disney 37 percent in the combined entity with Uday Shankar and James Murdoch's Bodhi Tree Systems, currently a 7 percent holder in Viacom18.
The boards of Star and Viacom will meet soon to finalize the merger date.
Meanwhile, Reliance Foundation chairperson Nita Ambani and Reliance Jio Infocomm chairman Akash Ambani recently joined the Viacom18 board.
Murdoch and Mohammed Ahmed Al-Hardan of Qatar Investment Authority, a key investor in Bodhi Tree, are also on the Viacom18 board that recently inducted Jyoti Deshpande, president of media and content, Reliance Industries and Shuva Mandal of Anagram Partners.
In the post-merger structure, Nita will assume the role of chairperson of the entity, while Uday, a seasoned media executive and former head of Star, will serve as its vice-chairperson.
Creating a media giant, the merger with a robust presence in both TV and digital platforms will yield revenue synergies across content, workforce, technology and monetization.
