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Murdoch, Uday Shankar media venture to invest Rs.13,500-Cr in RIL's Viacom18 unit

Press Release   Mint  

Media investment platform Bodhi Tree Systems is to invest INR 13,500 crore in Reliance Industries (RIL) Group's TV channel joint venture, Viacom18. RIL, via its unit Reliance Projects & Property Management Services Limited (RPPMSL), will invest INR 1,645 crore alongside. In addition, the JioCinema OTT app will be transferred to Viacom18. Bodhi Tree was promoted earlier this year by James Murdoch promoted Lupa Systems and media industry veteran Uday Shankar with backing from sovereign wealth fund Qatar Investment Authority. Viacom18 owns and operates a suite of TV channels under the Colors brand and the OTT platform, VOOT. Paramount Global (earlier called ViacomCBS and which owned 49% of Viacom18) will remain a minority shareholder in the JV and supply Viacom18 with global content (from its TV networks and streaming services such as CBS, Showtime Networks, Paramount Pictures, Comedy Central, Nickelodeon and MTV). Cyril Amarchand Mangaldas and Khaitan & Co. were the legal advisors to RPPMSL and Viacom18. PWC and BDO provided independent valuation of the Jio Cinema business and Viacom18; Citi and HSBC acted as financial advisors to TV18 and RPPMSL respectively. AZB & Partners was the legal advisor to Bodhi Tree while EY provided diligence services to Bodhi Tree. JSA was the legal advisor to Paramount Global. The deal is reportedly aimed with an eye on Viacom's planned bid for the upcoming bid (in June) for the broadcast rights for the Indian Premier League (IPL) cricket tournament. In 2018, Uday Shankar, then Star India chairman and chief executive officer, had successfully bid for consolidated media rights for IPL for INR 16,347.50 crore for five years. This year, other than Sony and Disney Star, Viacom18 is expected to bid for the IPL broadcast rights for the next five years. Viacom18 had launched the Sports18 channel earlier this month. The channel is currently airing matches from the NBA (National Basketball Association), FIFA World Cup, and LaLiga.