Reliance and Viacom18 today announced a strategic partnership with Bodhi Tree Systems, which is a platform of James Murdoch’s Lupa Systems and Uday Shankar, to create one of the most important TV and digital streaming companies in India.
Bodhi Tree Systems is leading a fundraiser with a consortium of investors to speculate Rs 13,500 crore in Viacom18, to jointly build India’s leading entertainment platform and pioneer the Indian media landscape’s transformation to a “streaming-first” approach.
Reliance Projects & Property Management Services Limited, which has influence in television, OTT, distribution, content creation, and production services, will invest Rs 1,645 crore.
In addition, the favoured Jiocinema OTT app is going to be transferred to Viacom18. Paramount Global (formerly referred to as ViacomCBS), is a number one global media and entertainment company comprised of iconic content studios, TV networks and streaming services including CBS, Showtime Networks, Paramount Pictures, Nickelodeon, MTV, Comedy Central, BET, Paramount+ and Pluto TV will remain as a shareholder of Viacom18 and can still supply Viacom18 its premium global content.
Bodhi Tree Systems, a platform between Lupa Systems Founder and CEO James Murdoch and Uday Shankar, the previous president of The Disney Company Asia Pacific and former Chairman of Star and Disney India, will leverage the partners’ shared record of building iconic businesses and shaping the media landscape in India and globally. Qatar Investment Authority (QIA) is also an investor in Bodhi Tree Systems.
Upon closing, Viacom18, in close cooperation with Reliance, Bodhi Tree Systems and Paramount Global, will shape a vision, strategy, and execution for its businesses, building on the strong foundation which is already present.
The transaction is anticipated to shut within six months and is subject to closing conditions and requisite approvals.
Cyril Amarchand Mangaldas and Khaitan & Co provided legal advisory and documentation services to RPPMSL and Viacom18. PWC and BDO served the independent valuation of the Jio Cinema business and Viacom18; Citi and HSBC were financial advisors to TV18 and RPPMSL respectively. AZB & Partners acted as the legal advisor to Bodhi Tree while EY served diligence services to Bodhi Tree. The legal advisor of Paramount Global was JSA.
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