It’s official: Viacom and TV18 have inked a deal to form a 50:50 joint venture called Viacom-18. Viacom is contributing its channels in India - MTV, Nickleodeon and VH1, alongwith some capital to the venture, while TV-18 is transferring Studio18, it’s production, distribution, home video and music co to the JV. There’s the possibility of Paramount and Dreamworks, Viacom’s motion picture companies, to collaborate with Viacom-18. A hindi general entertainment channel will be launched within a year. The alliance includes joint ownership of the management company for The Indian Film Company, which is in the process of being listed on the Alternative Investment Market (AIM) of the London Stock Exchange.

Philippe Dauman, President & Chief Executive Officer of Viacom, and Raghav Bahl, Managing Director of the TV18 Group signed the deal in Mumbai yesterday. The deal is subject to regulatory approval and other closing conditions. The companies will have equal representation on the board of Viacom18. The strategic alliance will include television, film and digital media content, with the mandate of creating India’s leading multi-platform media company. Digital media content across all of the television brands will be developed and distributed to Indian consumers. TV18’s investment in the company is through GBN, which will raise $200 million from an international listing.

Videos (1 and 2) of an interview with Dauman and Bahl. Here’s the transcript.

Disclaimer: I own an inconsequential number of shares of companies from the TV18 group.