NEW DELHI :
A merger of Sony Footage Networks and Viacom18 Media Pvt. Ltd is prone to be formally introduced by mid-August, stated three individuals acquainted with the event.
The merged entity is, nonetheless, anticipated to start out operations solely by the top of 2021, the individuals stated, requesting anonymity.
Viacom18 is a 51:49 three way partnership between Reliance Industries Ltd (RIL)-owned Community18 and US-based Viacom Inc.
The seemingly merger has been within the works for a year-and-a-half and it’s stated that Sony will take a majority stake of 74% in Viacom, which is able to personal the remaining 26%
The deal is geared toward offering Reliance larger management over India’s leisure ecosystem and serving to it preserve the content material pipeline going for its distribution networks of DEN and Hathway—each cable service suppliers—and its broadband and Web service JioFiber.
A spokesperson for Sony declined to remark whereas a spokesperson for Viacom didn’t reply to queries.
“It provides much more muscle to Reliance as a distribution-oriented firm with this devoted content material pipeline behind them,” stated one of many individuals cited above.
“Leisure broadcast enterprise is not core to RIL. Initially, after they had began assembling content material enterprise, it was meant for buyer acquisition for Jio and rising information utilization. RIL has realized that it could possibly handle this with industrial relationships with out proudly owning belongings,” stated an government at a big audit and consulting firm, declining to be named.
For Sony, the proposed merger with Viacom18 will assist obtain a wider footprint in India’s leisure area. Apart from the Hindi normal leisure channel, Viacom owns regional language and kids channels the place Sony isn’t sturdy.
“Sony’s general TV efficiency is seasonal. Its marquee TV reveals like Kaun Banega Crorepati, for example, come every year,” a media analyst stated on situation of anonymity.
“If Sony merges its India leisure enterprise with Community18’s leisure companies, the merged entity might have 18-20% market share in general viewership and about 45% share in Hindi normal leisure channel area,” stated the manager from the consulting firm.
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