iWorld
CCI approves Jio Cinema OTT and Viacom 18 Media merger
Mumbai: The Competition Commission of India (CCI) approved the proposed merger of Jio Cinema OTT and Viacom18 Media on Monday.
Following an investment by BTS Investment and Reliance Projects & Property Management Services, the CCI announced in a tweet on Monday that it had approved the merger of the Jio Cinema OTT platform with Viacom18 Media.
Commission approves amalgamation of the Jio Cinema OTT platform with Viacom 18 Media, following an investment by BTS Investment and Reliance Projects & Property Management Services pic.twitter.com/CWIXEJXx1t
— CCI (@CCI_India) September 19, 2022
In April, Reliance Industries (RIL) and Viacom18 announced a strategic partnership with Bodhi Tree Systems. According to an agreement signed, Bodhi Tree was obliged to invest Rs 13,500 crore in Viacom18, and Reliance Projects & Property Management Services, a wholly-owned subsidiary of RIL, was informed to invest Rs 1,645 crore in the broadcaster, forming one of India’s largest TV and digital streaming firms. As a result, Reliance’s popular Jio Cinema OTT app was transferred to Viacom18.
Bodhi Tree Systems (BTS) is a joint venture between James Murdoch’s Lupa Systems and the former chairman of Star India and Disney India Uday Shankar.
IT support services are provided by Reliance Projects & Property Management Services. Through its portfolio of channels and streaming service Voot, Viacom18 Media engages in the business of offering media and entertainment services.
Deals that exceed a specific threshold require regulator permission, which keeps an eye on unethical commercial practices in the market.
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
