In a tweet, the CCI said it has approved amalgamation of the Jio Cinema OTT platform with Viacom18 Media
Earlier this year, James Murdoch and Uday Shankar’s Bodhi Tree invested $1.78 billion in Viacom18
As part of the deal, it was announced that JioCinema, the on-demand video streaming service owned by Reliance, would be transferred to Viacom18
The Competition Commission of India (CCI) has approved the proposed merger of Jio Cinema OTT with Viacom18 Media.
In a tweet, the CCI said that it has approved the amalgamation of the Jio Cinema OTT platform with Viacom18 Media following an investment by BTS Investment and Reliance Projects & Property Management Services.
Earlier this year, Bodhi Tree Systems (BTS), an investment firm run by James Murdoch’s Lupa Systems and former Disney executive Uday Shankar, invested $1.78 billion in Viacom18. Meanwhile, Reliance Projects & Property Management Services invested $216 Mn in the media company.
As part of the deal, it was announced that JioCinema, the on-demand video streaming service owned by Reliance, would be transferred to Viacom18.
The approval of the CCI is required for deals that entail acquisition of shares, assets, control or voting rights if the involved parties have assets in excess of INR 2,000 Cr in India or a turnover in excess of INR 6,000 Cr. This is strictly to ensure the prevention of unfair trade practices in the business.
Reliance Projects & Property Management Services, a wholly-owned subsidiary of Reliance Industries, is engaged in IT support services. On the other hand, Reliance-owned Viacom18 Media offers media and entertainment services through its portfolio of linear television channels, as well as its streaming service, Voot.
During Reliance’s annual general meeting last month, its CMD Mukesh Ambani said that Viacom18 is looking to aggressively invest in movie rights and original content for its OTT platform.
Viacom18 is also increasing its investment in sports rights. Earlier this year, it beat Disney-Star to win the digital rights for the Indian Premier League for INR 20,500 Cr ($2.57 Bn).
As per a recent JM Financial report, the OTT platform of Viacom18, Voot, would become a leading player in the Indian market driven by IPL viewership.
Voot competes with the likes of Disney+Hotstar, Zee5, SonyLIV, Amazon Prime Video, and Netflix in the crowded OTT market of India.
