IBN18 Broadcast, a Network18 group company, has announced its decision to acquire a 43.4 per cent stake in Viacom18 Media for Rs 305 crore from BK Holdings, a subsidiary of TV18. Following the acquisition, IBN18 Broadcast's stake in Viacom18 will now increase to 50 per cent.Impact Analysis
Viacom18 is a 50:50 joint venture formed in May 2007 between the Network18 group and US-based media conglomerate Viacom Inc. IBN18 and BK Holdings Mauritius, a subsidiary of TV18, were the investing companies from the Network18 group. The current transaction is a follow on to the initial agreement under which IBN18 Broadcast had the option to buy out BK Holding's entire stake in the JV at a later date.
IBN18 Broadcast has diversified its business from news broadcasting to one of the leading general entertainment networks through Viacom18. In the current entertainment market, it sees continued growth potential from Viacom18 ventures like MTV, VH1, Colors and Nickelodeon; the Hindi entertainment channel Colors, for example, has gained an impressive 23 per cent share of the TV viewership in less than a year of its launch.