Viacom acquires 50% stake in Prism TV
Prism TV's regional channels were recently rebranded under Viacom 18's, a joint venture in India between Viacom and the Network 18 Group
American media firm Viacom Inc. on Friday announced that it has acquired a 50% stake in Prism TV Pvt. Ltd, which owns and operates regional entertainment channels ETV Marathi and ETV Kannada, among others, in a deal worth ₹ 940 crore (approximately $153 million).
All of these regional channels were recently rebranded under Colors, the flagship entertainment television brand of Viacom 18, a joint venture in India between Viacom and the Network 18 Group.
Philippe Dauman, president and chief executive of Viacom, said, “This acquisition is an important step in building on our leadership position in India, a key market in Viacom’s international growth strategy."
The transaction between Nickelodeon Asia Holdings Pte Ltd, a wholly owned subsidiary of Viacom, and Shinano Retail Pvt. Ltd, owned by Reliance Industrial Investments and Holdings Ltd, a subsidiary of Reliance Industries Ltd, was completed on Friday. Both parties received clearance from India’s Foreign Investment Promotion Board earlier this month.
Bob Bakish, president and chief executive of Viacom International Media Networks, the international division of Viacom, said, “Regional TV networks—and regional ad markets—are the next wave of growth in India. Having a strong national and broad regional presence gives us a powerful platform to launch additional brands, and introduce successful franchises and formats across India."
With this acquisition, Viacom will hold 50% stake in Prism TV and the remaining stake will continue to be owned by the Network 18 Group. Viacom 18 operates 10 entertainment channels, including MTV, Nickelodeon, Comedy Central and Colors.
Sudhanshu Vats, Group CEO, Viacom18, said: “This acquisition is a big milestone for Viacom and Network 18 and it showcases their combined conviction to build a powerful broadcast offering for the Indian market. We are delighted by the transaction and the next growth phase for the companies."
The deal gives Viacom a significant presence in the fast growing regional television sector in India. Collectively, regional TV stations account for the second largest share of viewing in the Indian market, behind only Hindi general entertainment channels.
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