Reliance And Disney Announce Much-Anticipated Merger, Join Venture Valued At Over Rs. 70,000 Crore
After months of speculation, Reliance’s Viacom18 and Disney’s Star India have merged their TV and streaming businesses. The joint venture formed as part of the merger is valued at Rs. 70,352 crore, or about $8.5 billion, on a post-money basis. The companies announced the development via an official press release on Wednesday, February 28, 2024.
Viacom18 Holds A Majority In The Joint Venture
As part of the transaction, the media undertaking of Viacom18 will merge into that of Star India Private Limited through a court-approved arrangement. Further, Reliance has also agreed to invest about Rs. 11,500 crore or $1.4 billion in the venture for its growth. Once the transactions go through, Reliance will own 16.34 percent, Viacom18 will own 46.82 percent, and Disney will own 36.84 percent of the merged entity.
As and when the joint venture comes into existence, Mrs. Nita M. Ambani will serve as its chairperson, while Mr. Uday Shankar as the vice chairperson. The merger of these OTT platforms has the potential to reshape the Indian digital streaming industry, as it will have over 750 million viewers across India, commanding a significant market share.
Several Popular Brands To Come Under One Roof
As part of the joint venture, viewers will be able to access content across entertainment (via Colors, StarPlus, StarGOLD), sports (via Star Sports, Sports18), and the latest television programs via JioCinema. Further, Disney will also grant exclusive rights to its films and productions in the country, with a license to more than 30,000 content assets, including its famous brand Hotstar.
Per the official press release, the “JV will seek to lead the digital transformation of the media and entertainment industry in India and offer consumers high-quality and comprehensive content offerings anytime and anywhere.” Commenting on the merger, Mr. Mukesh D Ambani, the chairman of Reliance Industries, said, “This is a landmark agreement that heralds a new era in the Indian entertainment industry.”
The deal is expected to go through by the fourth quarter of 2024 or the first quarter of 2025.
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