Reliance Industries Limited (NSEI:RELIANCE), along with other investors - notably James Murdoch and Uday Shankar - plan to invest over INR 120 billion in the entertainment and sports broadcasting business, responding to an industry consolidation triggered by the Zee-Sony merger. Murdoch, son of media baron Rupert Murdoch, and Shankar, former Star & Disney India Chairman, plan to acquire nearly 40% stake in Viacom 18 Media Private Limited, said highly placed sources close to the transaction. ViacomCBS Inc. (NasdaqGS:VIAC), which owns 49% stake in Viacom18, is likely to sell a small part of its stake and get diluted to about 10%, while Reliance Industries-owned TV18 will continue to hold a majority stake, said one of the sources quoted above.

The deal will include primary and secondary infusion of over INR 120 billion in Viacom18 from the investors at a valuation of around $4 billion (INR 300 billion), one of the persons told ET. The bulk of the investment is likely to be by way of primary infusion of funds. Besides the Murdoch-Shankar duo - who are coming in as strategic investor - a few financial investors may also buy stakes.

'Deal could be Finalised in 2-3 Weeks'. Singapore-headquartered Asia Initiatives, a 51:49 joint venture between Shankar and Murdoch's private investment company Lupa Systems, is in advanced talks with ViacomCBS and Reliance Industries, whose step-down subsidiary TV18 owns the remaining 51% stake, for the possible transaction, said the people cited. "Uday Shankar is driving the talks and a deal could be finalised in the next 2-3 weeks," said one person with direct knowledge of the matter.

"ViacomCBS will get diluted to around 10%. Shankar's entry and fresh funding will give a lot of ammunition to Viacom18 for the crucial IPL (Indian Premier League) media rights auction." A second person said the talks are on track and, as part of the deal, Shankar and his team will have a significant operational role in the company, including inputs into the hiring of a CEO and key managerial personnel. Text messages sent to Shankar and Lupa India MD Nitin Kukreja remained unanswered till press time.

Replying to an ET query, a Viacom18 spokesperson said, "As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis".