Reliance Ind calls off deal to merge Viacom18 after ‘strategic re-think’

NEW DELHI: Billionaire Mukesh Ambani's Reliance Industries has called off the proposed merger of his group's entertainment business with Sony Pictures Networks India following a strategic rethink.

Ambani's television networks housed in Viacom18 Media Pvt Ltd were to merge with Sony Corp, with the Japanese giant having a bigger stake in the merged entity.

However, Reliance has now had a rethink and has decided not to pursue the merger route, sources with direct knowledge of the development said.

Instead, the company is now keen to invest more in digital content creation.

Digital media and entertainment is an essential pillar of telecom unit Jio's digital business strategy, they said adding Reliance plans to invest aggressively and grow the digital media business.

Reliance, they said, wants to retain management control over the digital operations and invest behind creating India's No.1 OTT destination as well as a broadcast platform.

Also, entertainment is central to Jio's FTTH plans in partnership and collaboration with other content and production companies. There is a lot of interest from content companies and production houses in partnering with Reliance and Jio, and investors are keen to back such partnerships, they said.

Viacom18 Media Pvt Ltd is a joint venture between TV18 Broadcast Ltd and Viacom Inc. TV18 owns 51% share in the unit.