Sony-Viacom18 Merger to be announced soon!
2 min read
Sony Pictures Networks India + Viacom18 = The New Kings of Indian Entertainment Market. After months of delay & hard-end negotiations, the Dream Merger of SPN & Mukesh Ambani Backed Viacom18 is back on the table. SPN is a Global Entertainment Giant whereas Viacom18 is a JV between RIL’s Network18 & US-based Viacom Inc.
Sony-Viacom18 will become India’s 2nd Largest Network in India after Disney post the merger : (Via – ET)
• Expected Revenues : ~₹10,000 Cr+
• Total Employees : ~2,700
• Combined Channels : ~77
However, the biggest Moat for the deal will be the OTT Services!
Live Mint: As services owned by broadcast networks, the two have remained small players in the OTT (over-the-top streaming) space in India so far, capitalizing on catch-up television content. But the high-profile merger—expected to be announced soon—will give them greater size, scale and bargaining power to create more original content, said media industry experts. SPN’s SonyLiv & Viacom18’s Voot operate in a niche but haven’t penetrated deep like their counterparts yet.
SonyLiv is mainly known for Sports & their marquee shows like Kaun Banega Crorepati, Tarak Mehta ka Ooltah Chashma. While Voot for its daily soaps & Content for kids. Creating original shows for India like Amazon & Netflix will be their priority. This is where having Jio Studios will assist them greatly!
After the merger, individual revenues of SonyLiv & Voot are expected to grow by 30%. Disney Acquired UTV in 2012 & owns Star India as part of the 21st Century Fox Deal of $71 Bn in 2019. After the merger, Sony Pictures Network India will own around 51-55% stake in the company while the remaining share will be divided between Network18 and Viacom18.
Will this Merger prove to be fruitful for both the companies?
