In a landmark move, Reliance Industries Limited (RIL), Viacom 18 Media Private Limited (Viacom18), and The Walt Disney Company (Disney) have announced a binding agreement to establish a joint venture (JV) amalgamating the businesses of Viacom18 and Star India. This strategic collaboration, unveiled on February 28, involves the merger of Viacom18’s media undertaking into Star India Private Limited (SIPL) through a court-approved scheme of arrangement.

As part of this significant transaction, RIL has committed to investing ₹11,500 crores (~US$ 1.4 billion) into the JV for its growth strategy. The deal values the JV at ₹70,352 crores (~US$ 8.5 billion) on a post-money basis, excluding synergies. Upon completion of the merger, the JV will be controlled by RIL, with ownership stakes of 16.34% for RIL, 46.82% for Viacom18, and 36.84% for Disney.

Nita M. Ambani is set to assume the role of Chairperson of the JV, while Uday Shankar will serve as Vice Chairperson, providing strategic guidance. The JV aims to become a leading TV and digital streaming platform for entertainment and sports content in India. It will bring together iconic media assets across entertainment (Colors, StarPlus, StarGOLD) and sports (Star Sports and Sports18), catering to over 750 million viewers in India and the Indian diaspora worldwide.

The move seeks to lead the digital transformation of India’s media and entertainment industry, offering consumers high-quality and comprehensive content anytime and anywhere. The combination of Viacom18 and Star India’s media expertise, advanced technology, and diverse content libraries positions the JV to provide appealing domestic and global entertainment content and sports livestreaming services. The focus is on delivering an innovative and convenient digital entertainment experience at affordable prices.

Disney may also contribute additional media assets to the JV, subject to regulatory and third-party approvals. The JV secures exclusive rights to distribute Disney films and productions in India, boasting a license to over 30,000 Disney content assets.

Mukesh D Ambani, Chairman & MD of Reliance Industries, expressed enthusiasm about the partnership, describing it as a “landmark agreement that heralds a new era in the Indian entertainment industry.” Bob Iger, CEO of The Walt Disney Company, highlighted the enormous potential in India, stating that the joint venture will create one of the country’s leading media companies.

The transaction is expected to be completed in the last quarter of calendar year 2024 or the first quarter of 2025, pending regulatory, shareholder, and other customary approvals.

This collaboration between industry giants Reliance, Viacom18, and Disney signifies a pivotal moment in the evolution of India’s media and entertainment landscape, showcasing a strategic alignment to capture the burgeoning digital entertainment market.

By : Kruthiga V S

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