(Bloomberg) — Paramount Global is in discussions to promote its stake in its media three way partnership in India to Mukesh Ambani’s Reliance Industries Ltd., in accordance with folks conversant in the matter, as Asia’s richest man continues to consolidate his clout in one of many world’s fastest-growing leisure markets.

The New York-based media firm has been in superior talks to promote its minority stake in Viacom18 Media Pvt. to Reliance, stated the folks, who requested to to not be recognized as the data is non-public. Talks between Paramount and Reliance are nonetheless ongoing and will not end in a deal, the folks stated.

Representatives for Paramount, Viacom18 and Reliance all declined to remark.

Paramount, the dad or mum of CBS, MTV and different networks, has been promoting property, resembling its Simon & Schuster guide publishing arm, to cut back debt. It’s additionally weighing a proposal from producer David Ellison to purchase out the Redstone household’s controlling stake within the firm and merge his Skydance Media studio into Paramount.

Bloomberg Intelligence estimated a sale of the Viacom18 place might generate as a lot as $550 million that Paramount might use towards debt discount.

Paramount shares rose 3.4% to $10.56 as of 12:30 p.m. in New York

Viacom18 has spearheaded Reliance Group’s media foray lately as billionaire Ambani steadily shifted his fossil fuels-led conglomerate towards consumer-facing and technology-led companies. Viacom18 was additionally the car by which Reliance outbid Walt Disney Co. in 2022 to win the coveted streaming rights of the Indian Premier League, or IPL, cricket match.

Disney and Reliance signed a binding settlement final month to merge their Indian media operations, in mounting proof that international giants had been ceding floor to native heavyweights. Reliance and its associates may have a 63% stake within the new $8.5 billion media powerhouse, with Disney holding the remainder. Paramount’s stake, by way of Viacom18, will even shrink with the brand new deal.

Disney’s determination to merge with Reliance adopted its battle to retain subscribers. Ambani’s conglomerate disrupted the sports activities broadcast phase by streaming IPL cricket video games without spending a dime within the cricket-crazy nation of over 1.4 billion folks. Viacom18 signed a multiyear pact to distribute programming from Warner Bros Discovery Inc., in one other current setback to Disney in India.

Sony Group Corp., which has additionally fought to develop its market share in India, suffered an enormous blow after its merger with Zee Entertainment Enterprises Ltd. collapsed following long-lasting disagreements with Zee founders.

(Updates with estimated sale proceeds in fifth paragraph.)

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