MUMBAI: TV18 is now officially in control of the Viacom18 joint venture in which the US partner, Viacom Inc (Viacom), was a majority holder till now with 51 per cent. In an announcement to the Bombay Stock Exchange (BSE), it said that the formalities of the transfer of 1 per cent shares from Viacom’s paid up equity capital to TV18 had been successfully completed.
A statement to the BSE said, “With this acquisition, the company has acquired control and now holds 51 per cent of the equity share capital of Viacom18.”
In January, the companies had announced the decision to transfer power in the hands of TV18 for $20 million (Rs 127 crore). In the meantime, deals for content licensing and brands between Viacom and Viacom18 also got extended by a decade.
Holding more authority, TV18 can understand and execute strategies in the evolving digital India market. It can decide to drop or add new business verticals that can push up the company's profitability.
While announcing the plan to shift the power, Viacom International Media Networks CEO David Lynn also pointed out that Viacom18’s association with Network18 would help accelerate growth and even added Jio as one of the catalysts.
Viacom18 Group CEO Sudhanshu Vats said, “This development will allow us to leverage deeper synergies with Jio as we enter our next growth phase.” Undoubtedly, Vats meant the presence of the network in the digital sphere with Voot. Calling the company a ‘full play media organisation’, Vats stated that the focus will be on ‘enriching the digital life of every Indian’. Jio is likely to play a major role in boosting Viacom18’s presence and reach through its 160 million subscribers. Recently, the telecom company announced that it is positive of touching 99 per cent of India by Diwali (October-November) 2018.
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