Network18 ties up with Viacom

US-based entertainment content provider Viacom and media conglomerate Network18 today announced the completion of formalities towards the formation of their 50:50 joint venture (JV) in India.

As per the transaction structure, BK Holding Mauritius, a wholly-owned subsidiary of TV18, would infuse $ 50.5 million into the JV company Viacom18 Media. Additionally, Global Broadcast News (GBN), a group company of TV18, would infuse $ 40 million over the next three years.

GBN has acquired warrants convertible into equity shares of the company. It has also entered into an option agreement as per which GBN would be able to acquire the entire shareholding of BK Holding Mauritius in the JV.

Upon the implementation of this option, GBN's shareholding (including indirect holding) in Viacom18 would amount to 50 per cent.

"Viacom's inherent creativity and Network18's operational excellence make a potent combination that places Viacom18 in an enviable position in the Indian entertainment space, to entertain India's burgeoning film and television audiences," Network18 Managing Director Raghav Bahl said.

Viacom18 would be managed by a six-member board with equal representation by Viacom and Network18.

Viacom18 would launch a new Hindi-language general entertainment channel in India early next year. The service would consist of original, locally-produced programmes, and content from MTV Networks.

The JV would also launch a number of niche channels from the MTV Networks portfolio, as well as new brands.

Viacom18 Media would include television, film and digital media content across numerous brands as well as consumer products to build India's leading multi-platform entertainment powerhouse.

The JV would also operate local networks such as - MTV, VH1 and Nickelodeon India.

"This JV reinforces our long-term commitment to the Indian market. We look forward to expanding our presence in India with our new partners," Robert Bakish, President MTV Networks International and Chairman of Viacom18 Media said.

Studio18, the Motion Pictures division of Network18, is also an integral part of Viacom18 and it will continue to produce, acquire and distribute Hindi-language films.

Both the companies had announced their plans for the joint venture in May this year.