According to the latest reports coming from the entertainment sector, the Competition Commission of India (CCI) has given green light to a merg er between Jio Cinema OTT and Viacom 18 Media.
Jio Cinema OTT which was launched in 2016 along with other Jio services under the Jio Platform, decided to merge with Viacom 18 Media owned by TV18 a few weeks ago.
Viacom 18 currently has more than 20 channels in the Indian broadcasting network. Apart from Voot, and its OTT platforms, Viacom 18 also plans to launch another OTT platform named Paramount+ in 2023.
The approval given by the Competition Commission of India shows that the regulatory body did not find the merger to have any negative impact on competition in the market.
The Competition Commission of India is a regulatory body under the Indian government and is responsible for implementing rules and regulations related to competition in the Indian market. Any merger, Acquisition or share transactions that might have negative impacts on the competition are scrutinized by CCI in detail.
Over the top streaming service market in the country already has very strong players such as Netflix, Amazon Prime Video and Disney Hotstar Plus to name a few.
Pre-merger shareholding pattern
Jio Cinema OTT – Before the merger with Viacom 18, Jio Cinema OTT was a subsidiary company of Jio Platforms. Jio Platforms are owned by Indian multinational conglomerate Reliance industries.
Viacom 18 Media Private Limited is owned by Network 18 Group and Paramount Networks. This Network 18 is owned by Reliance industries.
Post-merger business pattern
The decision to a merger between both streaming and media firms came after a strategic investment agreement by BTS Investments and Reliance Projects & Property Management Services in Viacom 18.
Bodhi Tree Systems (BTS) owned by Uday Shankar and Lupa Systems will invest 13500 crore rupees in Viacom 18 along with 1645 crore rupees from Reliance Projects & Property Management Services. According to the agreement Jio Cinema OTT was transferred to Viacom 18 Media.
This transfer in technical terms makes Jio Cinema OTT a subsidiary company of Viacom 18.
With the merger of Jio Cinema OTT and Viacom 18, the stakeholders are planning to setup the largest TV and digital streaming firm in the country.
While Viacom 18 engages in the business of media and entertainment services, Reliance Projects & Property Management Services will provide IT support to the newly formed Venture.