Bodhi Tree Systems cuts down investment into Viacom18 by 70%

Rupert Murdoch and Uday Shankar-backed Bodhi Tree Systems, reduced its planned investment into Reliance’s broadcasting arm by almost 70 per cent.

On Thursday evening, it was disclosed that Bodhi Tree Systems has invested ₹4,306 crore into Viacom18, as part of the completion of the strategic partnership between Reliance, Bodhi Tree Systems and Paramount Global. However, at the time of announcing the fund-raise last year, Bodhi Tree Systems planned to infuse ₹13,500 crore into Reliance’s broadcasting venture.

Therefore, there has been a 70 per cent reduction by the Uday Shankar, Rupert Murdoch-backed investment vehicle. Although, Viacom18 will have access to a similar amount of funds after the completion of the partnership, as was committed when the strategic partnership between Reliance, Bodhi Tree and Paramount was announced.

As per the Thursday announcement, Viacom18 has access to ₹15,145 crore worth of cash for its planned growth. However, the majority of these funds will be provided by RIL group entities (₹10,839 crore).

On Thursday, the competition commission of India (CCI) also cleared ₹1,600-crore investment by Comcast Corp into Viacom18, via Bodhi Tree Systems as well. Effectively, Bodhi Tree is expected to hold a 16 per cent stake in Viacom18 once this also clears.

Sources at Reliance Industries told businessline that Reliance, Bodhi Tree and Paramount jointly took the decision to delay the dilution of RIL’s stake in Viacom18, based on the stellar performance of the JioCinema OTT platform for the FIFA World Cup and now the IPL.

A fter the formalisation of the partnership, RIL group entities now have a 60.37 per cent stake in Viacom18, and Bodhi Tree Systems has a 13.08 per cent stake. Reports also suggest that the investment amount was reduced due to a broader funding squeeze amid a slowdown in deal-making. The Hindu BusinessLine