The National Company Law Tribunal (NCLT) Mumbai Bench has approved the composite scheme of arrangement among Viacom 18 Media Private Limited, Digital18 Media Limited, and Star India Private Limited. The order, delivered on August 30, 2024, paves the way for a significant reshaping of India’s media landscape.
Key points of the approved scheme include:
- Transfer of Viacom18’s Media Operations Undertaking and Jio Cinema Undertaking to Digital18, a wholly-owned subsidiary of Viacom18.
- Demerger and transfer of Digital18’s V18 Undertaking to Star India.
- The scheme aims to bring operational efficiencies and facilitate future growth in businesses like sports, general entertainment, and digital content streaming.
- The merger is expected to result in cost reduction due to synergies, creating value for shareholders of Viacom18, Reliance Industries Limited (RIL) group, and Disney group.
The NCLT has set March 31, 2023, and April 13, 2023, as Appointed Dates for different parts of the scheme. The deal’s effectiveness is contingent upon receiving approval from the Competition Commission of India.
This merger is poised to create a media powerhouse, combining Viacom18’s strong presence in Indian entertainment with Star India’s extensive portfolio, potentially reshaping the competitive landscape in India’s media and entertainment sector.
