Reliance Industries Ltd., Viacom18 Media Pvt. Ltd. and The Walt Disney Company have announced a merger of their digital streaming and television assets in India. The companies have signed binding definitive agreements to form a joint venture which will combine the businesses of RIL’s Viacom18 and Disney’s Star India. As part of the transaction, the media undertaking of Viacom18 will be merged into Star India Pvt. Ltd. through a court-approved scheme of arrangement.
Reliance will invest Rs. 11,500 crore in the joint venture. The deal values the joint venture at Rs. 70,352 crore on a post-money basis, excluding synergies. Post completion of the deal, the JV will be controlled by RIL. Reliance will own 16.34% of the stake, Viacom18 will hold 46.82% and Disney, the balance 36.84%. Disney may also contribute additional media assets to the JV, subject to regulatory and third-party approvals.
Nita Mukesh Ambani will be the chairperson of the joint venture while Uday Shankar will hold the post of the vice chairman. The JV will bring together media assets across entertainment (Colors, Star Plus, Star Gold) including access to highly anticipated events across television and digital platforms through JioCinema and Hotstar. The merged entity is expected to have over 75 crore viewers across India. The JV will also be granted exclusive rights to distribute Disney films and productions in India, with a licence to more than 30,000 Disney content assets.
The transaction, subject to regulatory, shareholder and other customary approvals, is expected to be completed in the last quarter of 2024 or the first quarter of 2025.